A Case Study Of The Location Factors For Offshore Service-outsourcing In Guangdong Province

Outsourcing is a micro-enterprise behavior, but this behavior has evolved into a class of business industry, profoundly impacting macroeconomic States and the world. Offshore service-outsourcing has gradually become a key area of global industry and economic transfer, which plays an important role in promoting economic development, for its multiple advantages of effective, promoting employment, upgrading its industries and optimizing industrial structure. Ministry of Commerce and municipalities have issued a series of incentive policies to promote offshore service-outsourcing industry. Guangdong Province, with major export-oriented economy, is also an explicit proposal to develop offshore outsourcing industry.In order to clearly analyze the location advantages of the province in undertaking offshore service outsourcing business, this paper borrows location factors theory of FDI, taking location factors as a starting point, and selects eight location factors of offshore service-outsourcing:economic development and service industry development of macro economic factors, infrastructure factors, risk factors, foreign policy and intellectual property protection policy of government policy, labor quality and labor costs of human capital factors, setting eight hypotheses. In order to verify the practical implications of the various location factors on the offshore outsourcing, the paper found out data of Guangdong Province during the year 1990 to 2009, analyzing by tools of EViews and SPSS. To address multicollinearity of the time series data, we use SPSS software to estimate the model stepwise regression analysis, retains the significant factors of offshore outsourcing location: intellectual property protection policy and labor quality. After path analysis of removed factors, we found the removed factor maybe indirect inflecting offshore service-outsourcing. The results show that, the four factors of economic development, foreign policy, intellectual property protection policy and labor quality, has a positive effect in offshore service-outsourcing, which meets the general conditions. Meanwhile, other four factors were denied. By stepwise regression analysis, and the various types test of multicollinearity, serial correlation, stationarity and cointegration tests, the final model of location factors has finally constructed, also the corresponding error correction model.