@techreport{Stepanok2010Cross,
abstract = {I present a model of international trade and foreign direct investment (FDI), where FDI is comprised of greenfield FDI and mergers and acquisitions (M&A). Working in a monopolistically competitive environment, merging firms do not reduce competition. Mergers are motivated by efficiency gains and transfer of technology and expertise. Following empirical evidence, I model greenfield investors as the more productive group relative to M&A firms. The model has two symmetric countries and generates two-way flows of both M&A and greenfield FDI. Greater proximity to a market makes more firms choose greenfield FDI over M&A when investing there. Empirical evidence supports this result.},
address = {Stockholm},
author = {Ignat Stepanok},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F12; F23; O41; 330; Foreign direct investment; Mergers; Greenfield; Firm heterogeneity; Direktinvestition; \"{U}bernahme; Internationale Markteintrittsstrategie; Multinationales Unternehmen; Monopolistischer Wettbewerb; Theorie},
language = {eng},
number = {731},
publisher = {Ekonomiska Forskningsinst.},
title = {Cross-border mergers and greenfield foreign direct investment},
type = {SSE/EFI Working Paper Series in Economics and Finance},
url = {http://hdl.handle.net/10419/56317},
year = {2010}
}
