The Impact of M&A Activities on Regional Economy and Industrial Clusters

DOI: https://doi.org/10.62517/jbm.202409604

Author(s)

Bijie Li, Zhangzhong Huang*

Affiliation(s)

Hainan Vocational University of Science and Technology, Hainan, China *Corresponding Author

Abstract

This study investigates the impact mechanisms of mergers and acquisitions (M&A) on regional economic development and the formation and evolution of industrial clusters, aiming to reveal their roles in optimizing resource allocation, promoting industrial upgrading, and enhancing regional competitiveness. Through a combination of literature review and theoretical modeling, and grounded in division of labor economics and transaction cost theory, the research explores multiple dimensions such as economic network synergy, technological spillover effects, and regional industrial resource integration. the study first reviews domestic and international literature on the relationship between M&A activities, regional economy, and industrial clusters, establishing a theoretical framework for M&A’s multi-level impacts on regional economies. A model based on technological spillovers and synergy effects is constructed to analyze M&A’s role in driving the development of industrial clusters. Additionally, from the perspective of regional economic integration and industrial structure optimization, the study explores the dynamic impact of M&A on regional economic development. Results indicate that M&A activities significantly enhance regional economic efficiency through resource optimization and technological spillover effects, while fostering specialization, division of labor, and innovative collaboration within industrial clusters, thus improving cluster competitiveness. However, the actual outcomes of M&A depend on various factors, including regional economic policy environments, industrial foundations, and the degree of inter-enterprise synergy. This research provides theoretical insights and practical references for optimizing M&A policies and regional economic development strategies.

Keywords

M&A Activities; Regional Economy; Industrial Clusters; Technological Spillovers; Economic Synergy

References

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