Table 4 The impact of sanction on FDI,...

Table 4

The impact of sanction on FDI, greenfield and M&A

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	Baseline			GMM estimation
	FDI inflow	Greenfield	Merger	FDI inflow	Greenfield	Merger	FDI inflow	Greenfield	Merger
Sanction	−0.223***	−0.250**	−0.674***	−0.215***	−0.280***	−0.850***
Sanction	(0.072)	(0.097)	(0.236)	(0.328)	(0.298)	(1.177)
Arms							0.387***	0.201	0.463
Arms							(0.128)	(0.208)	(0.433)
Military							−0.204***	−0.166	−0.899***
Military							(0.077)	(0.098)	(0.229)
Trade							−0.224**	−0.209	−0.695***
Trade							(0.088)	(0.108)	(0.200)
Financial							0.135	0.225	0.148
Financial							(0.099)	(0.161)	(0.348)
Travel							−0.032	−0.154	−0.042
Travel							(0.158)	(0.187)	(0.454)
Other							−0.142	−0.026	−0.874**
Other							(0.135)	(0.170)	(0.430)
Unemployment_ratio	−0.460	−2.316**	−3.307	−7.041***	−4.006*	−9.677*	−0.589	−2.432**	−3.421
Unemployment_ratio	(0.877)	(1.047)	(2.225)	(2.093)	(2.256)	(5.107)	(0.871)	(1.054)	(2.232)
Bank_branch	1.789***	−0.033	−0.829	2.929***	0.752	1.847	1.795***	−0.051	−0.734
Bank_branch	(0.504)	(0.679)	(1.139)	(1.128)	(0.988)	(1.770)	(0.509)	(0.696)	(1.124)
Openess	−0.289	−0.239	0.679	0.249	−0.386	−0.863	−0.282	−0.231	0.636
Openess	(0.179)	(0.220)	(0.467)	(0.396)	(0.364)	(0.633)	(0.179)	(0.219)	(0.469)
Government_size	−3.384**	−4.536***	2.815	−2.557***	−1.951	−5.038***	−3.431**	−4.515***	2.838
Government_size	(1.472)	(1.692)	(4.395)	(3.762)	(3.053)	(5.322)	(1.479)	(1.733)	(4.413)
Population_density	0.102***	0.046	0.178***	0.006***	0.005***	0.051**	0.102***	0.045	0.189***
Population_density	(0.030)	(0.028)	(0.061)	(0.014)	(0.016)	(0.033)	(0.031)	(0.028)	(0.062)
Constant	8.296***	8.699***	5.427***	7.252***	7.933***	4.226***	8.224***	8.591***	5.348***
Constant	(0.359)	(0.416)	(0.998)	(0.735)	(0.602)	(1.114)	(0.361)	(0.418)	(1.000)
Observations	1,357	1,399	1,040	1,551	1,601	1,188	1,357	1,399	1,040
R-squared	0.893	0.836	0.774				0.894	0.837	0.778
AR(1) (p-value)				0.000	0.000	0.000
AR(2) (p-value)				0.271	0.482	0.361
Durbin-Wu-Hausman test (p-value)				0.000***	0.000***	0.000***
Sargan statistic (p-value)				0.173	0.249	0.214
Country FEs	YES	YES	YES	YES	YES	YES	YES	YES	YES
Year FEs	YES	YES	YES	YES	YES	YES	YES	YES	YES

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
	Baseline			GMM estimation
	FDI inflow	Greenfield	Merger	FDI inflow	Greenfield	Merger	FDI inflow	Greenfield	Merger
Sanction	−0.223***	−0.250**	−0.674***	−0.215***	−0.280***	−0.850***
Sanction	(0.072)	(0.097)	(0.236)	(0.328)	(0.298)	(1.177)
Arms							0.387***	0.201	0.463
Arms							(0.128)	(0.208)	(0.433)
Military							−0.204***	−0.166	−0.899***
Military							(0.077)	(0.098)	(0.229)
Trade							−0.224**	−0.209	−0.695***
Trade							(0.088)	(0.108)	(0.200)
Financial							0.135	0.225	0.148
Financial							(0.099)	(0.161)	(0.348)
Travel							−0.032	−0.154	−0.042
Travel							(0.158)	(0.187)	(0.454)
Other							−0.142	−0.026	−0.874**
Other							(0.135)	(0.170)	(0.430)
Unemployment_ratio	−0.460	−2.316**	−3.307	−7.041***	−4.006*	−9.677*	−0.589	−2.432**	−3.421
Unemployment_ratio	(0.877)	(1.047)	(2.225)	(2.093)	(2.256)	(5.107)	(0.871)	(1.054)	(2.232)
Bank_branch	1.789***	−0.033	−0.829	2.929***	0.752	1.847	1.795***	−0.051	−0.734
Bank_branch	(0.504)	(0.679)	(1.139)	(1.128)	(0.988)	(1.770)	(0.509)	(0.696)	(1.124)
Openess	−0.289	−0.239	0.679	0.249	−0.386	−0.863	−0.282	−0.231	0.636
Openess	(0.179)	(0.220)	(0.467)	(0.396)	(0.364)	(0.633)	(0.179)	(0.219)	(0.469)
Government_size	−3.384**	−4.536***	2.815	−2.557***	−1.951	−5.038***	−3.431**	−4.515***	2.838
Government_size	(1.472)	(1.692)	(4.395)	(3.762)	(3.053)	(5.322)	(1.479)	(1.733)	(4.413)
Population_density	0.102***	0.046	0.178***	0.006***	0.005***	0.051**	0.102***	0.045	0.189***
Population_density	(0.030)	(0.028)	(0.061)	(0.014)	(0.016)	(0.033)	(0.031)	(0.028)	(0.062)
Constant	8.296***	8.699***	5.427***	7.252***	7.933***	4.226***	8.224***	8.591***	5.348***
Constant	(0.359)	(0.416)	(0.998)	(0.735)	(0.602)	(1.114)	(0.361)	(0.418)	(1.000)
Observations	1,357	1,399	1,040	1,551	1,601	1,188	1,357	1,399	1,040
R-squared	0.893	0.836	0.774				0.894	0.837	0.778
AR(1) (p-value)				0.000	0.000	0.000
AR(2) (p-value)				0.271	0.482	0.361
Durbin-Wu-Hausman test (p-value)				0.000***	0.000***	0.000***
Sargan statistic (p-value)				0.173	0.249	0.214
Country FEs	YES	YES	YES	YES	YES	YES	YES	YES	YES
Year FEs	YES	YES	YES	YES	YES	YES	YES	YES	YES

Note(s): Robust standard errors in parentheses

***p < 0.01, **p < 0.05, *p < 0.1

[ViewLarge]

Sharing Unavailable