Title: Greenfield FDI, cross-border M&As and government size
Authors: Ashraf, Ayesha
Herzer, Dierk 
Nunnenkamp, Peter
Language: eng
Issue Date: 2016
Publisher: Kiel Institute for the World Economy
Document Type: Working Paper
Journal / Series / Working Paper (HSU): Kiel working paper
Issue: 2086
Publisher Place: Kiel
Abstract: 
This study examines the effects of greenfield FDI and cross-border mergers and acquisitions (M&As) on government size in host countries of FDI. Using panel data for up to 130 countries for the period from 2003-2011, the study specifically tests the compensation hypothesis, suggesting that by increasing economic insecurity, economic openness leads to larger government size. It is found that greenfield FDI increases labour market volatility and thereby economic insecurity while M&As are not significantly associated with labour market volatility. The main results of this study are that greenfield FDI has a robust positive effect on government size, while M&As have no statistically significant effect on government size in the total sample of developed and developing countries, as well as in the sub-samples of developed and developing countries.
Organization Units (connected with the publication): VWL, insb. Konjunktur und Wachstum 
URL: http://hdl.handle.net/10419/148390
Appears in Collections:2016

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