Productivity Spillover Effect Of China’s Manufacturing Sector’s Undertaking International Outsourcing

Thirty years of reform and opening up, China’s economic growth has made re markable achievements, with these striking achievements, many scholars doubt t he sustainability of China’s economic growth.This skepticism is mainly based o n China’s economic growth doesn’t depend on efficiency and technological pro gress, it’s because of the high accumulation of capital and high consumption of energy. From the point of input factors and capital accumulation, from2001to2011, the average contribution rate of investment in China’s economic growth has reached to52.4%, it’s the highest contribution rate of investment in the w orld, China’s economic growth belongs to high investment growth model and t his can not be sustained. From the point of energy consumption and environme ntal pollution, China’s economic growth depends on a lot of resources and has led to serious environmental problems. From the point of technological progre ss and productivity, efficiency, China’s economic growth is still relatively low.With China’s rapid economic growth, trade patterns and production structur es have changed dramatically. On the one hand, foreign trade has achieved sus tained rapid growth, on the other hand, intermediate goods trade has developed rapidly. From1978to2010,China’s total imports and exports increases about145times, the development of international trade has become a driving force of productivity and economic growth in China. And the development of trade also brings depth of participation in international division of labor,In the trend of economic globalization, the international outsourcing has become an important management pattern of Multi-National Corporation in developed countries.The p roduction and management of manufacturing industry of Multi-National Corporati on in developed countries gradually transfer to developing countries, forming a global production value chain with the outsourcing as the core. More and more C hina’s enterprises participate in the international division of labor system throug h outsourcing, China’s enterprises’undertaking the outsourcing activities have gradu ally become an important part belonging to the outsourcing activities of Multi-National Corporation.This paper is based on this background, studying China’s manufacturing ind ustry’s productivity spillover effect obtaining from undertaking outsourcing and th e different spillover effect between the different degree of export-oriented industr y. The conclusion is that undertaking international out-sourcing is conducive to i mprove China’s manufacturing productivity and that high degree of export-orient ed industry has a higher spillover effect. Finally I put forward some policy sugge stions according to the conclusions, continue to deepen undertaking outsourcing:to improve the support to high degree of export-oriented industry, to attract high-te ch industry international outsourcing to promote Indus-trial upgrading.