The Analysis On Chinese Economic Growth Effect By Undertaking International Service Outsourcing

Since1990's, various countries have involved in the process of transnational industry transferring, which means the rise of transnational investment in the service sector. Outsourcing industry emerged under the circumstances of continuous development of science and techniques, as well as competition which had becoming more and more fierce. Developed countries had applied outsourcing worldwide as a new strategy to reduce production cost and enhance competitiveness. In terms of this condition, how to take advantages of international outsourcing to effect economic growth of undertaking countries became a topic in developing countries.China as a undertaking country plays an important role in international outsourcing, so how to take advantage of historical opportunity to develop international trade thereby raise overall efficiency of national economy rationally became an urgent task. This paper start with introduction to sets out the background and meanings of transnational outsourcing, address the methodology and the structure of the paper; then from a conceptual perspective, elucidate the state of the art of outsourcing in various countries, strengths and weakness of developing outsourcing in China, and reveal the significance for China to undertake transnational outsourcing in a intra-product trade context; at the end, according to expound the relationship between transnational outsourcing and capital, labor, technical progress, natural resource , etc., try to analyze the effect of undertaking transnational outsourcing for economic growth in China, concentrating on the effect on technical progress, which means undertake transnational outsourcing will promote economic growth according to technology transferring and technology spillover. The result shows transnational outsourcing plays a positive role in promoting rapid and stable economic growth in China. In final part of the paper, summary a conclusion and propose some suggestions and strategies for further development of outsourcing in China.In summary, compare with traditional manufacturing industry, outsourcing has superiority in economizing on resources, protecting environment, allocating factors of production rationally, therefore, has great effect on the efficiency and quality of economic growth in China. The development strategy in China should convert to develop outsourcing industry vigorously, so as to achieve rapid and stable continuously economic growth under the conduct of the scientific concept of development.