Study On The Difference Of Reverse Technology Spillover Effect Between M&A And Greenfield Investment

On July 6,2018,the United States violated WTO rules,launched the largest trade war-imposed 25%tariffs on Chinese products which worth $34 billion.The trade bullying,protectionism and unilateralism in the American trade war are not only detrimental to the interests of the Chinese and American enterprises and people,but also a serious threat to global free trade and multilateral system and hinder the world economic recovery.The beginning of the trade war will make our current account surplus greatly reduced,China's net exports,some manufacturing and high-tech industries or will be greatly impacted,the related plate shocks may also aggravate the volatility of financial markets.The investment censorship standard of the investment policies in the US-Cfius is getting more and more severe,as well as the tougher policy stance on China,have further led to a fall in investment,which has hampered China's recovery from its investments in the US.Further restrictions on Chinese companies will only continue to reduce the likelihood of a rebound between the Chinese investment and American investment,and transfer Chinese capital to Europe and other advanced economies.In this context,China should accelerate the pace of"going out",through cross-border mergers and acquisitions and greenfield investment to acquire foreign advanced science and technology,seize foreign markets,improve the international competitiveness of products.However,very little research has addressed the difference of the reverse technology spillover effect between transnational m&a and Greenfield investment in China,so it is necessary to study the reverse spillover effect of different methods of investment in China,which is of great significance to guide our enterprises to "go out" more effectively.The purpose of this paper is to explore whether the reverse technology spillover effect of two ways in China's foreign direct investment is different,and try to prove that the reverse technology spillover effect of m&a is more inferred through the combination of theoretical analysis and empirical analysis.The basic structure of this paper is as follows:firstly,the literatures of domestic and international research related problems are summarized.Then define the relevant concepts and point out the relevant theoretical guidance.Then it summarizes the development course of multinational mergers and acquisitions and greenfield investment in our country,analyzes the current situation of transnational mergers and acquisitions and greenfield investment in our country,and makes a comparative analysis of the reverse technology spillover effects of M&A and greenfield investment from the realization mechanism.This paper analyzes the total factor productivity of listed companies in China since 2003-2015,and the changes of transnational mergers and acquisitions and greenfield investment of listed companies,and from the synergy effect of FDI,the article analyses the influence of transnational mergers and greenfield investment on its TFP.In the empirical analysis,in order to better control the individual heterogeneity and multiple collinearity problem,get more accurate regression results,this paper selects the Panel data regression and the double difference method,adding the enterprise characteristic variable as the control variable,and according to the Hausman test selected fixed effect model for regression.The results show that the reverse technology spillover effect of cross-border M&A is higher than greenfield investment in the short term,which is opposite in the long run,and the result is in agreement with the reality.Finally,the corresponding policy opinions are put forward.The basic conclusions of this paper include:firstly,by analyzing the current situation of cross-border mergers and acquisitions and greenfield investment,it is found that the scale of cross-border mergers and acquisitions and greenfield investment is expanding and the scale of cross-border mergers and acquisitions is relatively large.The major sectors of cross-border mergers and acquisitions focus on mining,manufacturing,financial insurance and transport communications.Mergers and acquisitions in emerging industries is in growth,such as services,have shrunk in the size of traditional industries.The target countries of mergers and acquisitions mainly focus on developed countries.The main industries of greenfield investment are mining industry,manufacturing industry and electric power.Although the scale fluctuation is big,but the overall trend is still on the rise,the investment destination country mainly concentrates in the developing country.Secondly,through theoretical analysis,it is found that the reverse technology spillover effect of greenfield investment may have lag effect due to the synergistic effect and time effect of cross-border mergers and acquisitions.Third,the empirical analysis found that:The enterprises that take part in cross-border mergers and acquisitions have higher total factor productivity than the enterprises before the merger,and the result of Greenfield investment enterprises are not significant.the reverse technology spillover effect of cross-border M&A is higher than greenfield investment in the short term,which is opposite in the long run,and the result is in agreement with the reality.The innovation of this paper is embodied in two aspects:firstly,this paper attempts to explore the reverse technology spillover mechanism and its effect size under two different investment modes of green space investment and transnational mergers and acquisitions in the view of developing countries with relatively scarce technical resources.Although there are many researches on the spillover effect of OFDI technology at home and abroad,the comparative study of OFDI classified by its investment mode is almost blank,there are only two relevant literatures in our country that divide OFDI into transnational merger and greenfield Investment and then study spillover effect.However,its choice of national perspective,and did not subdivide the enterprise level of research.Second,this paper attempts to analyze the OFDI spillover mechanism from the enterprise level.From the data source analysis,the existing research is mainly from the macroscopic point of view to summarize and analyze the OFDI spillover mechanism,and did not form a clear thread of the system,the enterprise as the OFDI microcosmic behavior main body,from its internal operation link carries on the summary research is still relatively lacks.