The Impact Of Reverse Technology Spillover Of Cross-border M&A Of China On GVC Upgrading Of Manufacturing Industry

The manufacturing industry holds a huge share in the countrywide financial system and its contribution to financial increase can’t be ignored.However,the speedy development of China’s manufacturing industry has lengthy relied on the lower priced labor delivered by the demographic dividend,which has positioned it at a lower stage in the international division of labor system.It is facing the dangers of "low-end locking" and "high-end blockages" in the Global Value Chain(GVC).Therefore,attaining GVC upgrading has grow to be an essential purpose for the improvement of China’s manufacturing industry,and the key to reaching this purpose lies in the enhancement of technology.In an open economic environment,a country,particularly a growing one like China,can acquire advanced technologies via cross-border mergers and acquisitions(M&A),so as to realize technological upgrading and catch-up by taking advantage of "latecomer advantage".Based on this,to study the impact of reverse technology spillovers from cross-border M&A on the GVC upgrading of China’s manufacturing industry is necessary for reversing the present situation of "low-end locking".Firstly,primarily based on present research,this article defines the concept and determines the measurement method of reverse technology spillover of cross-border merges and acquisitions and GVC upgrading of the manufacturing industry.Based on relevant theories such as technology localization and absorptive capacity theory,this article reviews and summarizes previous studies,and makes a theoretical analysis on the impact of reverse technology spillovers of cross-border M&A on the GVC upgrading of manufacturing industry,which takes the action path as the fundamental analysis framework and the absorption capacity regulation as the auxiliary analysis.Secondly,this article analyzes the status quo of cross-border mergers and acquisitions’ reverse technology spillover and GVC upgrading in China’s manufacturing industry,and conducts an in-depth analysis of the status quo and existing problems of the current impact.Finally,this paper uses panel data of 14 manufacturing industries in China from 2007 to 2020 to empirically test the impact of reverse technology spillover of cross-border M&A on GVC upgrading.In addition,this paper also analyzes the different influences that may exist in different industry types and different time periods,and studies the role of technology absorption in this influence.The study finds that:(1)The process of GVC upgrading of China’s manufacturing industry is relatively slow,especially in high-tech manufacturing industry,whose position does not match its importance.In addition,due to limited technology absorption capacity,reverse technology spillover from cross-border M&A fails to adequately promote GVC upgrading.(2)Enhancement of reverse technology spillovers from cross-border M&A and total factor productivity,expansion of foreign investment and import scale,and enhancement of research and development can significantly promote the upgrading of GVC in the Chinese manufacturing industry.The impact of industry capital intensity is not significant.(3)With the gradual implementation of cross-border M&A policies announced by the Chinese government in 2017,reverse technology spillovers gained by the Chinese manufacturing industry through cross-border M&A have played a more significant role in GVC upgrading from 2018 to 2020.(4)The enhancement of the absorption capacity of three kinds of technologies,namely,the ability to actively contact,learn and absorb and innovate advanced technologies,can significantly amplify the positive effect of reverse technology spillover of cross-border M&A of Chinese manufacturing industries on GVC upgrading.Based on the analysis,this paper puts forward some policy suggestions such as optimizing the external environment and improving the technology absorption capacity of the industry.