Greenfield for Manufacturing, M&A for Services: Sector-Specific FDI Growth Paths

This study examines the distinct impacts of greenfield investment and cross-border mergers and acquisitions (M&A) on host countries economic growth through case-study approach. Focusing on sectoral differences, it finds that greenfield investment is more effective in manufacturing industries, where it drives capital formation, employment, and technology transfer. In contrast, cross-border M&A better supports service-sector growth by transferring managerial expertise, organizational knowledge, and access to international networks. The case studies also reveal regional patterns: Southeast Asian countries depend heavily on greenfield manufacturing investments, whereas Latin American economies increasingly rely on M&A-service synergies. These findings suggest that FDI strategies should be tailored to national prioritiesdeveloping economies focusing on industrialization should attract greenfield investment, while service-oriented and advanced economies should adopt regulatory frameworks to maximize knowledge-intensive M&A benefits.