FDI and development: Does mode of entry matter?

Cross-border M&As, particularly those involving large firms, vast sums of money and major restructurings, are among the most visible faces of globalization. Not only do they dominate FDI flows in developed economies, they have also begun to take hold as a mode of FDI entry into developing and transition economies (chapter IV). As with globalization generally, the impact of M&As on development can be double-edged and uneven. Indeed, perhaps to a greater extent than many other aspects of globalization, cross-border M&As and the expanding global market for firm ownership and control in which they occur — raise questions about the balance of their benefits and costs for host countries. These questions arise despite the generally welcoming attitude towards inward FDI.

Sustainable Development Goals:

Decent Work and Economic Growth