FDI on the move: cross-border M&A and migrant networks

Jackie M.L. Chan*, Huanhuan Zheng

*Corresponding author af dette arbejde

Publikation: Bidrag til tidsskrift/Konferencebidrag i tidsskrift /Bidrag til avisTidsskriftartikelForskningpeer review

16 Downloads (Pure)

Abstract

Using data on Chinese outward direct investment and migrant stocks in 96 countries from 2003 to 2014, we find that migrant networks have a positive and significant impact on cross-border mergers and acquisitions (M&A), but not on greenfield investment. The migrant network effect is more pronounced for multinationals with less experience in the host country, especially for initial entrants that face greater firm, industry, and country-level information frictions. These results are robust to various estimation methods, including an instrumental variable approach that addresses potential endogeneity concerns. Our findings demonstrate the importance of knowledge spillovers from migrant networks to multinationals for facilitating entry into new markets.

OriginalsprogEngelsk
TidsskriftReview of World Economics
Vol/bind158
Nummer3
Sider (fra-til)947-985
Antal sider39
ISSN1610-2878
DOI
StatusUdgivet - aug. 2022

Fingeraftryk

Dyk ned i forskningsemnerne om 'FDI on the move: cross-border M&A and migrant networks'. Sammen danner de et unikt fingeraftryk.

Citationsformater