A Research On Outsourcing-Related Effects On The Development Of Chinese Manufacturing Industry

In recent years, with the development of the economic globalization, the system of global fragmentation of production has been on the development, which is mainly characterized by international segmentation of production process as well as production and manufacturing outsourcing. China's manufacturing industry, by the advantages of low manufacturing cost as well as strong industrial association abilities, has attracted a great number of multinationals, which have transferred their production and manufacturing segment to China. Under this circumstance, it is an inevitably practical issue that China's manufacturing enterprises will participate in the international production and labor division and merge into the global system of production division. At the mean time, the rapid development of multinationals' international direct investment and production outsourcing has provided Chinese manufacturers with precious opportunities in the merging into global system of production division and in the promotion of their value chains' advancement by means of contracting production outsourcing businesses issued by multinationals and their invested enterprises in China. If China's manufacturing industry could seize the opportunities, bring its own comparative advantages into play, and be assisted with appropriate growth strategies, the manufacturing industry will probably achieve domestic manufacturing industry's growth and upgrading with the promotion of outsourcing contracting activities.This dissertation investigates into the outsourcing factors in the growth of China's manufacturing industry, focuses on and discusses the outsourcing promotion mechanism and its promotion effects' transmission and achievement conditions for the growth of China's manufacturing industry, in the background of global production division system and based on the development of domestic-invested enterprises. On the basis of the investigation achievements, this dissertation puts forward self-motivated growth model for China's manufacturing industry and industry's outsourcing growth strategies with the promotion of outsourcing and also brings up policy suggestions related to the associated policies and measures. The main conclusion is that contracting outsourcing businesses issued by multinationals and their invested enterprises in China may serve as a method for the achievement of industrial growth and upgrading in several manu-facturing industries in some regions at present.The contents of this dissertation are as follows:1. This dissertation relatively thoroughly analyzes and summarizes the external promotive factors for the growth of China's manufacturing industry. The first chapter reviews recent domestic and foreign researches in the outsourcing field of manufacturing industry, focuses on the outsourcing factor and foreign investment factor for the promotion of China's manufacturing industry, discusses outsourcing factor's relations with foreign investment, foreign trade and processing trade and puts forward the conceptual framework of external promotive factors in the growth of China's manufacturing industry.2. This dissertation analyzes the situation for the development of Chinese manufacturing enterprises' outsourcing contracting activities. In the second chapter, on the basis of the current situation for the development of China's manufacturing industry, this dissertation not only discusses the opportunities for the development of Chinese enterprises' contracting of multinationals' and their China-based invested enterprises' production outsourcing businesses and the present condition, but also points out certain problems in the contracting of outsourcing activities.3. This dissertation puts forward a theoretical explanation framework for the outsourcing promotion mechanism in the upgrading of China's manufacturing industry. In the third chapter, starting from the severability of production and the segmentation of value chain, the dissertation advances a theoretical framework for the explanation of outsourcing activities with the basis tool of lowest cost curve, analyzes the possibility and conditions of the outsourcing contracting enterprises' advancement of value chain, further discusses the impact of Chinese contracting enterprises' sub-contracting activities on the formation and development of industry cluster, and also brings forward the wave-upon-wave industry transmission manner on the basis of outsourcing.4. This dissertation systematically investigates in the transmission mechanism and realization conditions for outsourcing promotion effects. In the fourth chapter, enterprise learning ability, a key factor for the advancement of value chain, is discussed, particularly in the relation between the acquisition of learning ability and the advancement of value chain. The transmission mechanism for the outsourcing promotion effects is mainly discussed. The dual promotion mechanism of outsourcing activities, the amplification effect of industry cluster, industrial knowledge spillover effect are explored respectively.5. This dissertation advances outsourcing growth strategy for China's manufacturing industry. In the fifth chapter, after a research of the advantages and disadvantages of outsourcing-driven upgrading as well as the relation between outsourcing-driven growth and self-motivated growth, the self-motivated growth model with the promotion of outsourcing is suggested for China's manufacturing enterprises. After comparison with the outsourcing-driven growth models of Taiwan region and South Korea, taking into consideration of the strategical period for the development and the situation of the developing country, the outsourcing growth strategy for China's manufacturing industry is advanced: the growth strategy based on self-motivated growth, promoted by outsourcing growth, taking full advantage of China's outsourcing contracting advantages, participating in the international production, contracting outsourcing businesses issued by multinationals and their invested enterprises in China, so as to promote the improvement of enterprise learning ability and the advancement of value chain. At the end of this chapter, a case study is made regarding the outsourcing growth strategy for China's manufacturing industry with the example of China's home appliances industry.6. In this dissertation, policy suggestions on the associated policies and measures for the outsourcing growth strategy are put forward in the sixth chapter, including policy adjustment for processing trade, policy adjustment for foreign investment as well as policy adjustment for encouraging enterprises' self-motivated innovation. Based on the analysis of necessary policy support and positioning of government functions during the course of manufacturing industry's growth, the direction and main channels for policy adjustment are advanced.The main innovative ideas and merits of this dissertation are as follows: It relatively systematically investigates into the outsourcing factors for the growth of China's manufacturing industry, discusses outsourcing strategy option for Chinese enterprises' merge into global production and labor division system from the perspective of the developing country;puts forward a theoretical explanation framework for the outsourcing promotion mechanism as well as the transmission mechanism and realization conditions for outsourcing promotion effects and thus discusses the theoretical feasibility of outsourcing contracting;puts forward the self-motivated growth model with the promotion of outsourcing for China's manufacturing enterprises at present, and the associated policies and measures for the outsourcing growth strategy of China's manufacturing industry, in the respects of policy for processing trade, policy for foreign investment as well as policy for encouraging enterprises' self-motivated innovation.This dissertation will to some extent enrich outsourcing theories in the field of manufacturing industry, enrich the theories and policies for the merging of China's manufacturing industry into the global production division system by means of outsourcing contracting with an aim to realize domestic enterprises' advancement of value chain and industry growth, and will also have certain referential value regarding how to promote and support manufacturing industry's growth and upgrading as well as evaluate and select growth strategies and ways for development.