Foreign Direct Investment: A Canadian Dimension

This paper examines the spatial manifestations of foreign direct investment (FDI) coming into Canada via international mergers and acquisitions (M&A) activity, for the years 1971, 1976, 1981, 1986 and 1991. Unlike domestic M&A, however, when international M&A occur, they are employed as a vehicle for FDI. Consequently, the M&A and FDI literature are visited and elaborated. Based on five international Poisson regression merger causal models, the attractiveness of Canada as a M&A target are categorized under three factors: financial/economic, corporate infrastructure and trade factors.