Green Investments,Cross-border M&As And The Technological Progress Of Asian Developing Countries

Technology transfer and technological spillover are the two main channels which foreign direct investment promotes host countries'technological progress. Distinguishing between Green Investment and Cross-border M&As, this paper researched the two mode investments impact on technological progress from the point of the two channels.On the Technology transfer stage, optimal technology transfer are related to the control of stock share.On the Technology spillover stage, the effect of competition and upstream-and-downstream linkages is different in the short term. But the impact will tend to be weaken in the long run. Technology spillover effect are related to the development of M&As enterprises and the absorption capacity. Therefore, the variables which reflect the absorption capacity of the host country are added to the empirical process. The panel econometric model use the data of Asia developing countries and regions which occur more cross-border mergers and acquisitions.The empirical results showed that Green Investment is a significant effect to promote the host country's technological progress, whereas the role of Cross-border M&As to promote technological progress is not obvious. Cross-border M&As only combined with the host country's own R&D capability can play a positive positive effect.So the developing countries and regions not only need to relax the control of stock share in order to enhance the power of technology transfer, but also need to rely on the improve of absorption capacity to promote foreign acquisition of spillover effect.