Cross-border M&A、Greenfield Investment And Change Of Export

With the improving ability to go abroad, more and more Chinese enterprises has participated in the outward direct investment, which has made many historical records.At the same time, cross-border M & A and greenfield investment, two parts of outward direct investment, have also experienced the fast expansion. As a developing country, the main aim of Chinese enterprises to invest abroad is to make full use of global markets and resources to enhance their international competitiveness. The quality of export products, which is an important issue in the international trade research these year, is also an important measurement of performance of these enterprises. So we need to answer, has the outward direct investment of Chinese enterprises promoted the improvement of the quality of export products? Furthermore, which one is more effective——cross-border M & Aor greenfield investment?Firstly, I summarize the export products quality of quoted companies and the changes of cross-border M & A and greenfield investment from 2000 to 2014. Then based on Helpman et. al. (2004), I introduce the quality of products into the CES demand function and business investment behavior segmentation to analyze the impacts of cross-border M & A and greenfield investment on export product quality. Secondly, in the empirical research part, based on the data of cross-border M & A and greenfield investment from quoted companies, I explore the impacts of cross-border M & A and greenfield investmenton export product quality respectively in DID model. Finally, I put forward some policy recommendations. The main conclusions are on the bellow.(1) In the theoretical model, the impacts of cross-border M & A and greenfield investment on the quality of export products mainly lie on two effects:the cognitive of product effect and trade cost effect. Since cross-border M & A could get acquisition of enterprise shares, there is no problem on the cognitive of product, while greenfield firms are new vendors, product acceptance is less than cross-border M & A. At the same time, cross-border M & A can get operate resources, their fixed costs are higher than greenfield investment. Based on the these trade effects, cross-border M & A could increase its level of product quality while greenfield investment is not clear.(2) In the empirical test, cross-border M & A have a significant positive impact on the quality of export products, while the impact is not significant greenfield investment. Meanwhile, the high-income countries of transnational mergers can significantly improve the quality of export products, while greenfield investment in low-income countries have a significant impediment on the quality of export products. In addition, the greater the gap from the advanced enterprises, it is more difficult for the company to improve the export quality.