NAŠE GOSPODARSTVO / 
OUR ECONOMY

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

Yilmaz Bayar

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.


Keywords


Greenfield investments, brownfield investments, economic growth, panel data analysis, Central and Eastern European Union countries

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