A Study On The Effects Of International Outsourcing On Employment And Wage Of China

Since the 90's of the twenty's century, with the constant expansion of the global outsourcing market and the rapid growth of China's undertaking of the international outsourcing, the impact caused by the international outsourcing upon the economic development in China has attracted much attention. Based upon the circumstances, this thesis aims to make an exploration of the impacts of the international outsourcing upon employment and wage of China's manufacturing industry.On the basis of the investigations on the status quo, manners and characteristics of the participation of China's manufacturing industry in the international outsourcing, the thesis has contrived the indices that measure the level of China's undertaking ofthe international outsourcing——OS value and OS ratio, and has calculated andanalyzed the outsourcing level of China's manufacturing industry between 1993 and 2006, which indicate that the total OS value of the manufacturing industry in China increased by 30 times, from US$3.477 billion to US$106.978 billion; and OS ratio by 1.6 times, from 4.67% to 12.12%. Meanwhile, the employment and wage trends of China's manufacturing industry present themselves with a change of a fall vs. a rise.According to the study above, the thesis constructs the panel data models to research into the impact of undertaking international outsourcing upon employment and wage of China's manufacturing industry, which shows that undertaking international outsourcing obviously boosts the growth of employment and wage of most manufacturing industries, to some industries, the influence even exceeds other explanatory variables. On the basis of the study, the thesis puts forward the policy proposals to boost our employment and wage to a higher level.