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Greenfield and Brownfield Investments and Economic Growth: Evidence from Central and Eastern European Union Countries

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  • Bayar Yilmaz

    (Usak University, Faculty of Economics and Administrative Sciences, Turkey)

Abstract

Global foreign direct investment flows in terms of greenfield and brownfield investments have increased during the recent three decades resulting from the accelerating globalization. The considerable increases in the flows of foreign direct investment have many eventualities for the national economies. This study investigates the mutual effects among greenfield and brownfield (mergers and acquisitions) investments and economic growth in Central and Eastern European Union countries during the 2003–2015 period employing panel data analysis. The findings revealed that both greenfield and brownfield investments had positive influence on the economic growth, but the influence of greenfield investments was found to be relatively higher. Furthermore, one-way causality was discovered from both greenfield and brownfield investments to the economic growth.

Suggested Citation

  • Bayar Yilmaz, 2017. "Greenfield and Brownfield Investments and Economic Growth: Evidence from Central and Eastern European Union Countries," Naše gospodarstvo/Our economy, Sciendo, vol. 63(3), pages 19-26, September.
    • Handle: RePEc:vrs:ngooec:v:63:y:2017:i:3:p:19-26:n:3
    DOI: 10.1515/ngoe-2017-0015
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    References listed on IDEAS

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    More about this item

    Keywords

    Greenfield investments; brownfield investments; economic growth; panel data analysis; Central and Eastern European Union countries;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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