International Outsourcing And Its Impact On Export Competitiveness

In the 1980 s,The international industrial transfer which characterized with developed countries outsourcing the labor-intensive and low technology production chain to less developed economies began to rise.As a developing country,China undertaken the production of some intermediate inputs such as raw materials and accessories from developed countries in the primary stage,this is international outsourcing from perspective of undertaking country;In the expansion phase,outsourcing the non-core and low efficiency production processes to foreign companies,this is international outsourcing from the perspective of outsourcer country.Since China's accession to the WTO,it greatly promote the development of China's manufacturing industry by undertaking international outsourcing from the developed countries,and made China became the world's factory.The studies has also shown that developed countries' international outsourcing had a profound impact on their Productivity,employment and international trade.So it is of great significance to find the current situation of China's international outsourcing and its impact on China's export.This paper split international outsourcing into material outsourcing and service outsourcing,research the current situation of material and service outsourcing in manufacturing industry,then analyze their different impact on manufacturing industry's export competitiveness.Firstly,this paper use the OECD input-output table to calculate the international outsourcing ratio of China's manufacturing industry from 2000 to 2011,which include material outsourcing and service outsourcing.Then analyze the whole manufacturing industry and manufacturing division's international outsourcing,material and service inputs' industrial features and the source structure.Secondly,this paper use MS index and CA index to describe the present status and development trend of manufacturing export competitiveness.Then summarize and analyze the function mechanism of international outsourcing to export competitiveness.At last,use the empiricle testing methods to explore the different impact of material and service outsourcing on the corresponding manufacturing industry from 2000 to 2011,furthermore,this paper shows the different impact on different technology content of manufacturing industry.The empirical results show that from 2000 to 2011,material outsourcing is still dominant,but showed a trend of decline from 2004;service outsourcing scale is relatively small,but steady rise.Material outsourcing scale has obvious industry difference,service outsourcing is generally low;technology content of material and service inputed to different industry has big difference,the material inputed to the manufacturing industry are more coming from less developed economies,on the contrary,the iuputed service are more coming from developed economies and the percentage increase year by year.China's manufacturing exports competitive advantage still concentrated in low and middle industry,but has a weakening trend,under the threat of countries such as India.Compared with the developed countries,most of the high technology manufacturing exist exports competitive disadvantage,but some industries such as electronic and optical equipment manufa cturing industry are competing with the developed countries.The service outsourcing contributes to manufacturing's export competitiveness,however,the effect of material outsourcing on export is not obvious.In high technology manufacturing,both material outsourcing and service outsourcing have a more significant effect on export competitiveness.