The Impact Of International Outsourcing On Labor Productivity Of Guangdong Province Industrial Sectors

Since the1980s, with the development of economy globalization, more and moreenterprises are engaged in international outsourcing activities, and makes theinternational outsourcing whose main characteristics are intermediate product importhas achieved a great development, and becomes a new growth point of internationaltrade.As the biggest developing country in the world, China accelerates theintegration into the global economy system, on one hand, to undertake a large numberof spare parts, raw materials, intermediate input products of developed countries, andthis is from the perspective that China as the contracting outsourcing country; On theother hand, China imports a large number of products from the developed countriesas intermediate input, and this is from the perspective that China as the outsourcingcountry. Chinese enterprises outsource the low efficiency product parts to theoverseas enterprise, it is necessary to review the relationship between the outsourcingand labor productivity from the perspective that China as the outsourcing country.As China’s reform and opening up forefront, and also as China’s manufacturingcenter,Guangdong province undertakes a large number of foreign industrial transfer,at the same time, more and more enterprises also outsource the intermediateproduction parts which they are not skilled in. From the input-output table of theGuangdong province in year1997,2002, and2007,we can see the quantity ofintermediate inputs in Guangdong industry increases a lot. This paper is based on theview that China as the outsourcing country,and Guangdong province as the sampleanalyses that whether the international outsourcing of Guangdong province haspositive effects on labor productivity, attempts to find the reason why laborproductivity of Guangdong province increases besides the factors of R&D investment,human capital investment, FDI. And it has theoretical meaning and realistic meaningfor us to understand the high-speed economic growth and rapid increase of laborproductivity in Guangdong province since the reform and opening up.This paper analyses the effects of international outsourcing onGuangdongprovince’s industrialproductivity by using1997,2002,2007input-outputtable data of Guangdong, with the FH index calculation of the material outsourcingrate and service outsourcing rate of Guangdong province’s21industry sectors. Testresults show that the material outsourcing and service outsourcing both have positiveeffects on Guangdong industry labor productivity, and the promoting function ofservice outsourcing is more obvious. When considering the difference of industryfactor intensity, we find that the service outsourcing have a greater influence oncapital-intensive industries than on labor-intensive industries, while the industrydifference of material outsourcing is not so obvious. And also we find that thetechnical progress caused by outsourcing is a kind of capital-saving technical progressthrough the Translog Production Function.