Research On Economic Effect On Outsourcing-Undertaking Countries And Empirical Study Of Outsourcing-undertaking Level In China

Outsourcing is an important strategy mode of global resource collocation implemented by transnational corporations to increase their core competence and an important way for the developing countries to get involved in the international system of labor division. With further reform and opening up, the trend of China's outsourcing undertaking becomes more and more obvious these years. While most studies on outsourcing by domestic academe focus on the descriptive introduction or the general statement of outsourcing from the management perspective and there is little literature explaining the economic effects of outsourcing on the outsourcing-undertaking countries in a normative way, which is in highly contrast with China's status quo of huge outsourcing-undertaking behavior. In this paper, we make an analysis on the effect of outsourcing on benefit got by the undertaking parts from an undertaking country's point of view, which will provide theoretical basis of undertaking outsourcing for China. At the same time, we have made an assessment of the level of outsourcing undertaking and come up with strategies of enhancing outsourcing undertaking level in China to provide basis of the operation decision-making and policy design for enterprises and the government respectively.We divide the paper into four parts (but 5 chapter). In part one, we make a general description on outsourcing, including definition, measurement, characters of the whole outsourcing market and economic theory of outsourcing. In part two, we use a simple model of Fennstra &Hanson (2003) to get the point that countries undertaking outsourcing can get surplus, which will provide the theoretic basis of undertaking outsourcing. In part three, we make a description of china's status quo of undertaking outsourcing. Using the input-output table and Hummels, Ishii, Yi( 2001) model, we estimate vertical specialization in trade in China's manufacturing industries of the selected years from 1992 to2003. On the basis of part 3,in part 4, we make an analysis on this result and give some suggestion on how to upgrade undertaking outsourcing.