Bearing in mind the different nature and the impact of various types of foreign direct investments (FDI) on the one hand, and the specific macroeconomic environment in the post-socialist countries on the other hand, in this paper we reexamine the selected macroeconomic factors that affect the two types of FDI inflows (cross-border mergers and acquisitions and greenfield FDI) in four countries of the former Socialist Federal Republic of Yugoslavia. The study employs the balanced panel data framework and covers twelve-year period (2006–2017). Having performed the Hausman test, we use the random effect model and provide evidence that: (1) the key FDI macroeconomic determinants in stable business conditions, examined in numerous research studies, can have a different impact on FDI in times characterized by unstability and financial crisis, (2) some determinants of FDI inflows have different importance and direction in the case of cross-border M&A and greenfield FDI. Our findings are relevant for policymakers who should reconsider the key factors that fuel the FDI inflows towards their developing economies.
CITATION STYLE
Dencic-Mihajlov, K., Lepojevic, V., & Stojanovic, J. (2021). What drives cross-border mergers and acquisitions and greenfield foreign direct investment capital flows? Reconsideration in the case of the selected former yugoslav countries. Engineering Economics, 32(3), 234–246. https://doi.org/10.5755/j01.ee.32.3.27440
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