The Effect Of Outsourcing On Productivity In China's Manufacturing Industries

The world economy had experienced a long time recession in the 1980 s,manufacturing productivity of Euramerican main developed countries achieved varying degree of increase.Western scholars also found that these countries take global production transfer on a large scale in the period.Enterprises didn't undertake the whole parts of production,instead,they transfered low value-added,labor-intensive and low-technology production parts to other developing countries or areas.Integrated global optimal resource,reduced production cost,improved the productivity level of enterprises,people called this phenomenon“ International outsourcing”.China's economic development has made a grate progress since reform and openness.At present,China's economy enters the“ new moral”,transform the mode of economy development,achieve the industry structure optimization,we must improve productivity vigorously.After nearly40 years of development,China's many enterprises grow into large-scale,high-technology and high-openness enterprises.We have reason to believe that these enterprises have the ability to use their comparative advantages to particular in international division of labor,they can focus limited element resources on the core business through international outsourcing,give full play to their comparative advantages,to achieve the strategic objective of “ China-Manufacturing-Excellence”.Processing trade as the main form of undertaking foreign outsourcing,in the severe environment that China's export enterprises encounter trade barrier continually,its contribution to economic growth has narrowed gradually.Therefore,as clients to improve the level of technology through import intermediate inputs,and participate in international division of labor to enhance core competitiveness,is increasingly becoming China's enterprises' possible choice to improve productivity.After that,can China's manufacturing industries raise their productivity through international outsourcing? How is the action degree? Does discrepancy exist because of the difference of industrial nature? What is the specific influencing mechanism and approach? What's more,give outsourcing business to different countries from international outsourcing market to operate and manage,will its impact on the change of productivity be influenced by it? Solving these above problems is fundamental objective of this study.This paper calculates the China-basedmaterial outsourcing and service outsourcing based on the China's 35-sector input-output table(1999-2011)of the World Input-Output Database(WIOD).The results show that the outsourcing of manufacturing industries in China is not high,the promotion space is relatively large.And the rate of material outsourcing is higher than serviceoutsourcing,but growth is far slower.Through research of panel data,it finds that different forms of outsourcing both have a positive effect on productivity,the influence coefficient of service outsourcing is about 3.8 times of material outsourcing.Explore the differences of productivity effects of outsourcing in different undertaking countries and nature of industries further,the empirical results can be summarized as two points: 1)the material outsourcing to OECD countries has a positive effect;and the positive effect of service outsourcing to non-OECD countries is more significant;2)the positive influence of material outsourcing in large-scale and high-profitable industries is more obvious,and service outsourcing plays a more positive role in promoting productivity development of small-scale,low-profitability and low-export industries.