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The Composition of FDI in the MENA Region and Other Countries: Econometric Investigation and Implications for MENA Countries

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  • Philipp Harms
  • Pierre-Guillaume Méon

    (Université libre de Bruxelles)

Abstract

We investigate the determinants of the distribution of FDI across greenfield investment and mergers and acquisitions in a sample containing up to 91 developed and developing countries over 1987-2005. The share of M&As is found to increase with market capitalization and better civil rights. Openness to trade reduces the share of M&As in favor of greenfield investment. We compare the composition of FDI flows to MENA countries to the predictions of the estimated model. We observe a great heterogeneity among those countries.

Suggested Citation

  • Philipp Harms & Pierre-Guillaume Méon, 2013. "The Composition of FDI in the MENA Region and Other Countries: Econometric Investigation and Implications for MENA Countries," Working Papers 793, Economic Research Forum, revised Nov 2013.
    • Handle: RePEc:erg:wpaper:793
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    References listed on IDEAS

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