The Impacts Of China’s Industrial Outsourcing On Productivity Based On The Contracting Country Perspective

With the deepening of international division of labor, a new trade pattern-offshoreoutsourcing-was born on the basis of the original models of international trade. In recent years,the rapid development of offshore outsourcing has become a new growth point for internationaltrade. On the one hand, China undertakes some production of intermediate inputs such as partsand raw materials from developed countries; on the other hand, Chinese enterprises entrust someinefficient or lack of technical production processes to foreign firms. Because of the imbalanceof regional economic development in China, especially the export-oriented economy in coastalareas is relatively high. Therefore, we select offshore outsourcing of Guangdong as the object ofresearch.What does Guangdong’s offshoring outsourcing have effects on the industrial productivity?Around this problem, this paper first defines the definition of outsourcing, then using theinput-output table data of Guangdong province to calculate the outsourcing rate of75industries.The results show that the higher average of Guangdong province substance outsourcing, and thedownward trend, which is contrary to the national level of material outsourcing, but the loweraverage level of service outsourcing industry differences. In addition, the paper also analyzes theoffshore outsourcing drivers of productivity mechanism.Finally, we draw outsourcing model of Amiti and Wei, combined with the Cobb-Douglasproduction function, empirical research productivity effects of offshore outsourcing ofGuangdong province, and examine industry differences in the intermediate inputs nature andindustry characteristics impact on productivity. The results show that the material outsourcingand service outsourcing are conducive to the Guangdong industrial upgrading of the level ofproductivity, and the service outsourcing has a much larger effect than the material outsourcingon productivity; low degree of concentration of exports and capital-intensive industry inpromoting productivity is pronounced; at the same time, we have seen through cross-examine oncapital, labor and outsourcing, the result of Guangdong is different from the national sample data,the former has led to labor-saving technological progress.