Is Greenfield Investment Greener for the Welfare of Lower-Middle Income Countries? Market based Empirical Analysis with GMM Approach


  • Ali Raza The University of Haripur, Pakistan
  • Muhammad Iqbal University of Vienna, Austria
  • Nasir Hussian National Defense University, Islamabad. Pakistan



Greenfield Investment, Lower-Middle Income Countries, Foreign Investment, Economic Development, Welfare


Globalization is considered as the catalyst for the progress of economic activities and economic development of lower-middle-income countries. Greenfield investment not only promotes welfare but also helps in the health and education sector of these countries. This study examined thirty-four (34) sampled countries of the lower-middle-income group from different regions for a time span of 1998-2017. Im, Pesaran and Shin (2003) test is applied for testing panel unit root and one step system GMM technique is applied for the complete data analysis. The results of the study concluded that greenfield investment has increased economic growth and helped to push the welfare activities of sampled countries. Besides the increase in economic growth and welfare, greenfield investment also brings improvement in the health and education sectors through the transfer of new and advanced technologies from the developed nation firms to the host countries. Therefore, lower-middle-income countries must approve soft and friendly economic and business policies for the attraction of foreign investors from abroad. Such policies will help in promoting and increasing economic activities and economic development of the sampled countries.

Author Biographies

Ali Raza, The University of Haripur, Pakistan

Lecturer, Department of Management Sciences, The University of Haripur, Pakistan.

Muhammad Iqbal, University of Vienna, Austria

Department of Economics, University of Vienna, Austria.

Nasir Hussian, National Defense University, Islamabad. Pakistan

Department of Leadership and Management Studies, National Defense University, Islamabad. Pakistan.


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How to Cite

Raza, A., Iqbal, M., & Hussian, N. (2021). Is Greenfield Investment Greener for the Welfare of Lower-Middle Income Countries? Market based Empirical Analysis with GMM Approach. Journal of Marketing Strategies, 3(3), 194 - 206.