Department of Economics and Business Economics

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

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FDI on the move : cross-border M&A and migrant networks. / Chan, Jackie M.L.; Zheng, Huanhuan.

In: Review of World Economics, Vol. 158, No. 3, 08.2022, p. 947-985.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Harvard

Chan, JML & Zheng, H 2022, 'FDI on the move: cross-border M&A and migrant networks', Review of World Economics, vol. 158, no. 3, pp. 947-985. https://doi.org/10.1007/s10290-021-00450-1

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Vancouver

Author

Chan, Jackie M.L. ; Zheng, Huanhuan. / FDI on the move : cross-border M&A and migrant networks. In: Review of World Economics. 2022 ; Vol. 158, No. 3. pp. 947-985.

Bibtex

@article{650d19bbd0d74b6d9eebc45c686ede4a,
title = "FDI on the move: cross-border M&A and migrant networks",
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.",
keywords = "Chinese migrant networks, Cross-border mergers and acquisitions, Foreign direct investment, Greenfield, Information barriers",
author = "Chan, {Jackie M.L.} and Huanhuan Zheng",
note = "Publisher Copyright: {\textcopyright} 2022, The Author(s) under exclusive licence to Kiel Institute for the World Economy.",
year = "2022",
month = aug,
doi = "10.1007/s10290-021-00450-1",
language = "English",
volume = "158",
pages = "947--985",
journal = "Review of World Economics",
issn = "1610-2878",
publisher = "Springer",
number = "3",

}

RIS

TY - JOUR

T1 - FDI on the move

T2 - cross-border M&A and migrant networks

AU - Chan, Jackie M.L.

AU - Zheng, Huanhuan

N1 - Publisher Copyright: © 2022, The Author(s) under exclusive licence to Kiel Institute for the World Economy.

PY - 2022/8

Y1 - 2022/8

N2 - 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.

AB - 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.

KW - Chinese migrant networks

KW - Cross-border mergers and acquisitions

KW - Foreign direct investment

KW - Greenfield

KW - Information barriers

UR - http://www.scopus.com/inward/record.url?scp=85124307415&partnerID=8YFLogxK

U2 - 10.1007/s10290-021-00450-1

DO - 10.1007/s10290-021-00450-1

M3 - Journal article

AN - SCOPUS:85124307415

VL - 158

SP - 947

EP - 985

JO - Review of World Economics

JF - Review of World Economics

SN - 1610-2878

IS - 3

ER -