An Analysis of the Monetary Transmission Mechanism of M&A, Greenfield FDI, Domestic Investment, and GDP Per Capita Growth: The Structural Vector Correction Model in Indonesia

Abstract

Purpose: The study aims to evaluate the different implications of mergers and acquisitions (M&A) and Greenfield foreign direct investment in the transmission mechanism effects on the growth of gross domestic product per capita (GDP per capita) in Indonesia. The origin of the study stems from past academic debates that contested whether Greenfield FDI or M&A bear more effect on the economic growth in emerging markets.