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Purpose: This study aims to test the impact of different institutional quality indicators on two modes of foreign direct investment (FDI)-greenfield investment and cross-border mergers and acquisitions (M&As) for a sample of 110 countries over the period 2003–2017. Design/methodology/approach: The authors develop a model of well-known FDI determinants, such as market size and potential, openness, the value of the national currency and the quality of institutions. The authors examine one-by-one five different institutional factors: law and order, investment profile of the host country, control of corruption (anti-corruption); democratic accountability, and government stability, applying a generalized method of moments (GMM) estimator that assures no endogeneity and reverse causality of the key explanatory variables. Findings: The results point out the fact that fertile institutional conditions for attracting greenfield FDI to developing countries require law and order, good investment conditions and a state of democracy, but not necessarily tight control of corruption and a stable government. On the other hand, the appropriate institutional environment for attracting cross-border M&A sales flows to developing countries includes strong law and order, good investment conditions, strict control of corruption and strong democratic accountability. The results for developed countries show overall smaller importance of institutions as a determinant of both types of FDI. Originality/value: This is the first study to analyze the differentiated determinants of the two modes of investment. The study holds implications for crafting two different policies for attracting greenfield FDI and M&A sales. [ABSTRACT FROM AUTHOR]

This is the first study to estimate the effects of outward foreign direct investment (FDI) with its two modes of exit, outward greenfield FDI flows (GFDI) and cross-border mergers and acquisitions purchases (M&A), on four ecological footprints (EFs) of source (home) countries of FDI. We examine a global sample of 111 countries with the help of a dynamic panel estimator. We find that outward GFDI reduces the Consumption EF and Production EF of home countries irrespective of their level of development, confirming the reverse FDI ecological haven hypothesis, while M&A produces mixed results in developing countries. Additionally, the effects of both outward FDI types on Imports EF and Exports EF in developed countries are mostly positive, raising questions related to the management of the international production value chains and international cooperation for global protection of ecosystems. A stable planetary ecological system is critical for continuous human development. With the growing internationalization of production, the distribution of the ecological burden across countries is of enormous importance. Our study has implications for the protection of global ecosystems' services, calling for a multinational agreement for preserving planetary ecological stability. [ABSTRACT FROM AUTHOR]

We analyze how the mergers and acquisitions (M&As) and greenfield foreign direct investment (GFDI) outflows impact the host countries' air pollution at the sectoral level. Following the recent advent of multinationals from emerging economies, we examine outflows rather than inflows. Evidence indicates that there are important distinctive effects of FDI mode of exit. GFDI outflows benefit the environment in the full sample and developing countries, supporting the reverse-pollution haven hypothesis, and at the industry level in the electrical power industry and building. The positive impact of M&A outflows on the environment is revealed only when data is disaggregated further into the industry level in the transport industry of developed economies and the electrical power industry of developing countries. We find that heterogeneities caused by countries' development levels and the FDI's two exit modes, M&As deteriorate the environment less than GFDI. [ABSTRACT FROM AUTHOR]

We test the theory of ecologically unequal exchange that manifests in FDI ecological havens and FDI ecological halos by focusing on the two modes of entry of FDI, GFDI, and cross-border M&A sales and investigating their impact on the ecological footprints of nations. We apply a dynamic panel methodology, based on an "IPART" theoretical model. We find that first, overall, GFDI tends to be more harmful to ecosystems than cross-border M&A. Second, we find evidence of ecologically unequal exchange, since, in developed nations, the harmful effects of GFDI occur through increases in the consumption EF and imports EF, while in developing countries, the GFDI burden is born by foreign activity-related footprints, the imports EF and export EF, both of which are related to being a part of a product supply chain leading to exporting activity. Third, cross-border M&As tend to harm the ecosystems of developing countries, where they increase consumption EF and the production EF, demonstrating an FDI ecological haven effect. Based on these findings, we make distinct policy recommendations for the two types of FDI. [ABSTRACT FROM AUTHOR]

This article examines the effect of cross-border mergers and acquisitions (M&A) outflows on government size in home countries. We focus on up to 89 developed and developing economies during the period 1996–2018. The results show that cross-border M&A outflows decrease the government size in total sample as well as in sub-samples of developed and developing countries. The results are stable across different econometric specifications and provide support to the efficiency hypothesis. [ABSTRACT FROM AUTHOR]

This study examines the effects of greenfield foreign direct investment (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 to 2011, the study specifically tests thecompensation 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. [ABSTRACT FROM PUBLISHER]

This article examines the effects of greenfield investment and M&As on domestic investment using panel data for 100 developing countries for the period 2003 to 2011. It is shown that while cross-border M&As do not have a significant effect on domestic investment, greenfield FDI has a large crowding-out effect. [ABSTRACT FROM PUBLISHER]