The Development Of International Service Outsourcing Analysis Of Institutional

Technological progress and institutional change is the essential and important factors for the development of international service outsourcing. This thesis focuses on the analysis of institutional factors, expanding from three levels such as multilateral trade rules, the relevant system of contracting states and the package country's institutional factors. This is mainly based on the following two points:first, the current literature about the impact of policy and institutional factors on international service outsourcing is in lack of systematic and comprehensive analysis. International services outsourcing is a special implementation approach of international services trade. Multilateral trade rules based on the framework of the WTO system had a significant impact on international service outsourcing. In addition, the international service outsourcing is carried out between the contracting states and the package country, the contracting country's system direction and the package country's system building jointly influence international service outsourcing's development. In order to reflect the impact of institutional factors on international service outsourcing comprehensively and systematically, this thesis is developed mainly from the above-mentioned three levels. Second, in the context of service globalization and the upsurge of international service outsourcing, China has proposed to develop international service outsourcing, integrating into a new round of international industrial transfer trend. This will help to solve a number of deep levels contradictions in China's economic development process. But China international service outsourcing development started late, how to stand out in the international keen competition? The Government 's strong support in the institutional level is the key. But at present depth analysis of the factors influencing package country's international service outsourcing development is in lack. This thesis makes a depth analysis of the motivation, path choice and effect of domestic institutional change, introducing the domestic institutional factors and using institutional economics analysis approach. Also this thesis make an empirical analysis of India's system building of international service outsourcing and its development. Finally give some suggestion and countermeasures about China's building international service outsourcing system.This thesis includes seven chapters:the first chapter is the Introduction section. This section includes the definition of related concepts, research background, statement of the problem, study framework and main contents, methodology and innovations of this thesis.Chapter 11 is a literature review. This section is mainly on the related literature review of international service outsourcing development theory, institutional transition theory and institutional factors influencing international service outsourcing. The literature review lay the theoretical basis for this thesis. Through the related literature review, I found that the current institutional factors affecting international service outsourcing development is lack of comprehensive, systematic, in-depth analysis, which made this research perspective.Chapter III is multilateral trade rules and the development of international service outsourcing, analyzing institutional factors of international service outsourcing development mainly from the perspective of multilateral trade rules. The two important achievements of GATT Uruguay Round negotiations is "the General Agreement on Trade in Services" and "Agreement on Trade-Related Aspects of Intellectual Property Rights," establishing the multilateral rules of WTO on trade in services and intellectual property protection, which help to promote the development of international service outsourcing. "General Agreement on Trade in Services" applied the MFN and national treatment principles to the field of trade in services, and all Parties present their schedules on market access. "General Agreement on Trade in Services"'s liberalization-orient help to reduce barriers to international service outsourcing and promote the development of it. International service outsourcing contracting party is extremely sensitive to the effectiveness of intellectual property protection. "The Agreement on Trade-Related Aspects of Intellectual Property Rights "promotes the process of internationalization of intellectual property protection and help to improve IPR protection level of package party, thus safeguarding the interests of contracting party and promoting the process of international service outsourcing.The enhance of Outsourcee's intellectual property protection level has the following effects on international service outsourcing:First, it will help to reduce the transaction costs of Outsourcer. Second, it helps to control outsourcing risks of Outsourcer. Third, it help to consolidate the competitive advantage of Outsourcer. To strengthen intellectual property protection will enhance the location advantages of Outsourcee. At the same time,IPR protection make the Outsourcee generate intrinsic motivation to self-innovation.Chapterâ…£is related systems of and the development of international service outsourcing, analyzing system factors mainly from the perspective of contracting states. At present, the major contracting countries of international service outsourcing are three major economies:the United States, Japan, the EU. From the point of view of United States, the motivation for outsourcing is to obtain the labor cost advantage and make up insufficient of the domestic labor supply.The system constraints of labor supply are mainly embodied in two aspects, one is higher education, another is immigration policy. Another important reason for the rapid development of U.S. international service outsourcing is the Government's support on international service outsourcing. However, there are fluctuations in the U.S. policy on outsourcing services, adversely affecting the development of international service outsourcing to a certain extent. The shortcomings of Japanese long-term employment system becomes increasingly obvious, the Japanese firms tend to service outsourcing. Compared to the United States and Europe, the profound impact of long-term employment system made Japanese companies has a strong lack of thoroughness in international service outsourcing. Japanese Government actually encourages outsourcing, promoting the development of it. However, due to the impact of long-term employment system, service outsourcing in Japan develops slowly. EU countries'laws and regulations restrict the development of international service outsourcing. The reason of United Kingdom's rapid development of international service outsourcing services primarily is the more liberal UK outsourcing policy.Because of new understanding on the economic effects of outsourcing services, the German Government is carrying out reform of regulations and policies, which will help promote the development of international service outsourcing.Chapter V focuses on the theoretical analysis of the package country's institutional factors and the international service outsourcing development which is the key point of this thesis. In an international context of service globalization and the rapid rise of international service outsourcing, many developing countries actively undertake international service outsourcing, and issued a series of supportive policies, but the effect of promoting economic development in the package country is uncertain, and must be accompanied by relevant domestic institutional reform and improvement.Therefore, domestic institutional factors are introduced in this chapter. We analyses the motivation of domestic institutional transition, the system path choice and the effects using the theory and methods of institutional economics. One motive of domestic institutional transition is for pursuing the external profits of institutional transition. The new institutional arrangements make interest groups get larger net external profits in relation to the existing system, so that a new supply of institution is generated. Another motivation of domestic institutional transition is to weaken the domestic system barriers. The development of international service outsourcing promotes the deepening of trade liberalization, but if a high barrier exists, the economic development impact will be greatly reduced. In order to weaken the domestic system barriers, the domestic system should be changed. Institutional change will produce path-dependent, despite better strategic options it may still be locked in low efficiency state.In order to get rid of this inefficient equilibrium, first it requires government's policy intervention. The Government is an agent of collective action, collective action often have to rely on top-down command and legal enforcement. Second it is to rely on the growth of domestic interest groups. Third, the impact of foreign interest groups can also induce a highly efficient strategies to be dominant vector. We build a theoretical model based on this, analyzing collective action's impact on the system choice. First, using the model we analyze the general mechanism of domestic institutional change promoted by trade liberalization. Second, we further analyze game between interest groups and the motive of dynamic path selection mechanism in institutional change.Domestic institutional change selected collection contains a number of related systems, this thesis makes an analysis mainly from four aspects. First is service outsourcing industry's characteristics and the system choice of developing modern service industry. Second is the prerequisite of service outsourcing and the optimization of intellectual property protection systems. The third is the core elements of undertaking service outsourcing and human resources supply options. The fourth is market factors of developing service outsourcing and the choice of system. One of the effects of domestic institutional change is the improvement of location advantages. From the function of system's perspective, institutional arrangements undertake to enhance international service outsourcing advantages mainly through playing oriented features, reducing transaction costs and risks of such acts.Second is the effects of resource allocation. The allocation of resources includes international and domestic allocation of resources. Effective institutional arrangements can significantly reduce the transaction costs of a region to attract more production factors into the region. In addition, the system may provide incentives for people's preferences, influencing people's choices, so that the flow of resources and configuration will be different, thus determining different development paths.Chapter VI is a system built and empirical analysis of international service outsourcing development, taking India as an example. Indian's experience on service outsourcing system construction provides China with a useful insight to develop the current practice of international service outsourcing.First, international service outsourcing development in India is not a direct result of the Indian government supportive policy in service outsourcing. The critical point is that domestic institutional transition provides a good macro environment. Second, India's macro environment of developing international service outsourcing is primarily the development concept change, which promotes India's electronic revolution. Industrial policy and trade policy changes promote the development of modern service industry in India. The optimized intellectual property protection system provides a good legal environment for the development of international service outsourcing in India. Higher education system and the incentive system provide India the applicability of human capital developing international service outsourcing.Chapter VII is China's international service outsourcing system constraints and Construction.This chapter mainly analyzes China's system constraints in the development of international service outsourcing and put forward some proposals to build the system. First, we analyze China's system constraints in the development of modern service industry and make recommendations accordingly, mainly based on theory and concepts of informal institutional level. Second, we measured strength of IPR protection in China, and made an analysis of China's IPR protection system and the development of international service outsourcing. Third, we analyze China's human resources constraints in the development of international service outsourcing, and put forward appropriate recommendations from education system and incentive system. Fourth, we put forward some countermeasures and proposals from the level of institutional innovation under Chinese domestic market demand.