Abstract: Although most studies show that foreign merger and acquisition (M&A) can promote Chinese enterprises to export and investment in technology, but most of them ignore the endogenous problem of M&A. It is hard to identify that whether the enterprise' behavior of export and investment in technology is determined by foreign capital or by the characteristics of enterprises, because foreign investor will be likely to choose enterprises which is more effective or export-oriented. Therefore, enterprise data in China is used to do the empirical test during the period of 2001-2007, which is based on the Propensity Score Reweighting Estimator to solve the endogenous problem. Further enterprise heterogeneity theory is introduced to explain this phenomenon. The results show that foreign merger and acquisition (M&A) do affect enterprise behavior of export and technology progress, and different level of foreign participation exist different influence on the firms' behavior.

Key words: M&A, exports, technology progress