The Empirical Research Of China’s Industrial Productivity Effects Of Undertaking International Outsourcing

Since the1980s, international outsourcing as the main content of international industrialtransfer began to rise, international outsourcing became an important strategy ofinternationalization in more and more multinational companies. The international outsourcingmakes Significant influence on the world with its own technology the overflow and technolog ytransfer effect. Therefore, study of international outsourcing plays an particular role in theimportance of the economic effects, and own both theoretical and practical significance.China, as a developing country, on the one hand, the Chinese companies give some ofthe low efficiency of production processes entrusted to foreign companies, as the outsourcingdefined from the the contracting country perspective; On the other hand, they undertake theproduction of the raw materials and components from the developed countries, as theoutsourcing based on the undertake perspective. Undertaking international outsourcing ofmanufacturing, the most significant character since China’s accession to the WTO, had asignificant impact on our society and economy. Proper evaluate the impact of the productivityassessment and inspection is of great significance. This paper is about the theoretical andempirical research of the impact on Industrial productivity of undertaking InternationalOutsourcing, which mainly focused on empirical research from the point of undertakingcountry.This paper first reviews the literature of international outsourcing and its impact onproductivity, try to define and summarize the relationship between the two based onpreliminary. Secondly, discriminate the definition and meaning of outsourcing and productivity,using vertical specialization index and total factor productivity as the parameter. Then,general analyze of the mechanism of the effect of the undertake outsourcing on theproductivity of industries in China. At last, use the empirical testing methods to explore theimpact on the productivity of our industries to undertake outsourcing, with the data of 2000-2010final selection of the22industrial sectors in China. The empirical results show that,in2000and2010, the outsourcing rate presented first and then decreased. Materialoutsourcing significantly greater than the proportion of the service outsourcing, and showedstrong differences between businesses.Undertake international outsourcing helps to improvethe productivity of our country, and this role is mainly achieved by promoting technicalprogress. Moreover, the productivity effect of service outsourcing is greater than the materialimpact.