Undertaking International Service Outsourcing And Poverty Alleviation: Implications Of Indian Experience In Western China

With the progress of information technology and the strengthen trend of global economic, there has a rapid development of international outsourcing. In this kind of trade, developed countries usually play the role of sending out the input products;while the developing countries undertaking the business from them by using their cheaper labor force. Trade between the developed countries and the developing countries develop a new division of labor form, which may benefit the developing countries` economic level. Also, we need notice that, beside the economic benefit, the developing countries have the most poverty people of the world. If we can prove the correlation between the developing outsourcing and reducing poverty, that will have the important practical significance to all the developing countries, include China.First of all, this paper started with the basic meaning of poverty, cleared the main way of poverty reduction, and based on the meaning of outsourcing; the causing reasons and economic effect to going on the analysis. Using theoretical analysis to explain the path that outsourcing can reduce the poverty by three aspects. And rely on the empirical analysis to inspect the dynamic characteristics strictly in the long-term.In the end of the paper, sum up the successful experiences of some developing countries。We can get the conclusions following:(1)Theoretically expounds the mechanism of action that slowing poverty in the undertaking countries both on the view of micro and macro.(2) Empirical analysis found that between undertaking international service outsourcing and malnourished population change down had the long-term stable causal relationship in the India.(3)From contrast analysis of the foundation both developing economic and environment between the western region of China and India, the results showing that the development of outsourcing service industry in order to slow down the poverty has possibility and practical significance in the western region in China; At the same time,China’s western region need more inputs on the aspects like policy, education and human resources to support the development of service outsourcing.