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In literature, the "quality" of FDI rather than its "quantity" was started to be focused on in order to be beneficial for economic development. One of the indicators of FDI's "quality" is accepted as its "mode of entry", greenfield or brownfield investments. The paper argues that greenfield investment is more useful for development in order to have its direct positive impact through investment. The paper empirically investigates this by a cross-section data analysis. The main findings support this argument. Findings also back the argument that brownfield can be beneficial for development in the long-run in relation with human capital development.

Is FDI Beneficial for Development in any Case: an Empirical Comparison between Greenfield and Brownfield Investments