Study Of The Impact Of Cross-border Mergers And Acquisitions On The Host Country's Industrial Competitiveness

Cross- border mergers and acquisitions was an important form of foreign direct investment (FDI), which has experienced a quiet great progress since the end of 19th century. Especially after 1990s, cross-border mergers and acquisitions entered into a brand new phrase, when cross-border expressed some new characteristics and some new rules. Along with the surge of cross-border mergers and acquisitions, the trend of economic globalization is breaking through the market border of every sovereign country. Simultaneously, trade liberalization, finance globalization, and production internationalization are all becoming inevitable tide. In all these progress, the impact of cross-border mergers and acquisitions on industrial competitiveness is catching more and more attention of the home countries, especially the developing countries and transforming countries, and presenting some significant problems, such as what does the cross-border mergers and acquisitions can do to the industrial competitiveness of home countries? How can the cross-border mergers and acquisitions affect the industrial competitiveness of home countries? Facing the surging of cross-border mergers and acquisitions, what should we do in order to make use of the advantages while keep out of the disadvantages? The main purpose of this treatise is to investigate questions above, and constitute a persistent basis for furthermore studies. On this basis, assuming an integration of normal analysis and empirical analysis, and utilizing some facts, we research the impact of cross-border mergers and acquisitions on industrial competitiveness of China, and educe some preparatory conclusion.The logical sequence of this treatise is from abstract to concrete, from theory to practice. In other words, we will try to establish a basic analysis framework, and then investigate the mechanism and the influence of cross-border merges and acquisitions affecting the industrial competitiveness of home countries. After this, we will see about the implication of cross-border mergers and acquisitions to Chinese industrial competitiveness, and put the emphasis on such a question: At present time, whether China can make use of cross-border merge to enhance the competitiveness of China? Grounded on this reasoning, we can divide the treatise into tow sections, including seven chapters.The first section consists of five chapters, which focus on academic analysis. The first chapter summarizes the studies on this topic, and describes the importance of doing such investigation. After these analyses, we draw a conclusion that most literatures in existence didn't touch the problem of cross-border mergers and acquisitions from the point of its impact to the industrial competitiveness of home countries. In a word, few of these studies integrates the two aspects of cross-border mergers and acquisitions and the industrial competitiveness, and didn't form a consistent system.The second chapter investigates in the background of open economy the factors which affect the industrial competitiveness. The main purpose of this part is to constitute an analysis framework in which cross-border mergers and acquisitions acts on all the factors above, such as production factors, market demand condition, market structure, and industrial structure, and then affects the industrial competitiveness of home countries.The main concern of the third chapter is to see about the determination factors of technology transfer and spillover, and the relationship between technology transfer and spillover and theirdetermination factors. Moreover, we put the emphases on the question that develops a simply model to examine the effect of transfer technology under cross-border mergers and acquisitions on local industries development. The basic conclusion is that in the case of no technology spillovers, transfer technology under cross-border mergers and acquisitions will damage domestic industries development. If there are technology spillovers to the local firm and spillovers exceed a certain threshold, trans...