Greenfield and Brownfield Investments and Economic Growth: Evidence from Central and Eastern European Union Countries

Yilmaz Bayar

Yilmaz Bayar

Keywords: Greenfield investments, brownfield investments, economic growth, panel data analysis, Central and Eastern European Union countries

Abstract

Global foreign direct investment flows in terms of greenfield and brownfield investments have increased during the recent three decades resulting from the accelerating globalization. The considerable increases in the flows of foreign direct investment have many eventualities for the national economies. This study investigates the mutual effects among greenfield and brownfield (mergers and acquisitions) investments and economic growth in Central and Eastern European Union countries during the 2003–2015 period employing panel data analysis. The findings revealed that both greenfield and brownfield investments had positive influence on the economic growth, but the influence of greenfield investments was found to be relatively higher. Furthermore, one-way causality was discovered from both greenfield and brownfield investments to the economic growth.

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Author Biography

Yilmaz Bayar

Usak University, Faculty of Economics and Administrative Sciences, Turkey
E-mail: yilmaz.bayar@usak.edu.tr

Yılmaz Bayar was born in Malatya, Turkey, in 1977. He completed navy high school in 1995, graduated from the Naval Academy in 1999, and served 13 years in the navy. He was awarded the master degrees in the field of accounting and finance from Marmara University Institute of Social Sciences in 2006, in the field of international economics and finance from Bahcesehir University Institute of Social Sciences in 2007, and in the field of international relations and globalization from Kadir Has University Institute of Social Sciences in 2008. He was also awarded a PhD degree in the field of economics in Istanbul University Institute of Social Sciences in 2012. He worked as an assistant professor in the Faculty of Business, Karabuk University, during the period from September 2012–March 2015 and now working as an associate professor in the Faculty of Economics and Administrative Sciences, Usak University, since March 2015.

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