Do Outsourcing Contribute To The Improvement Of The Productivity Of Chinese Enterprises?

According to the authoritative third party Devott predict that in the period of China's"Thirteen Five" development plan,China's domestic outsourcing market volume will grow at the rate of 14 percent per year in rapid iterations.China's outsourcing market is expected to exceed three hundred billion US dollars mark in 2019.In the future China's outsourcing market will accounted for 17.2 percent of the total size of global outsourcing industry and become the second largest outsourcing market only after the United States.With the rise of China's Internet penetration continues to increase,and the third revolution of information technology,definition of outsourcing will no longer overshadowed by the appearance of international outsourcing.It's essence is being excavated and found by the general public.The starting point and goal of this study is to change the angel of studying outsourcing,regarded it as a way of production organization.from the perspective of production organization to analyze this form of organization in the process of the development of social progress,especially in the Internet era today.What kind of impact will outsourcing make in Chinese enterprises on labor productivity?This paper will use the common measure methods in the past to measure the degree of vertical integration of China's industrial enterprises designated size of outsourcing rate.This paper learned and expanded Tomiura(2005)model,and use the data of China's total State-owned and non-state-owned industrial enterprises data in the year of 2007 and 2011.This paper will try to analysis the effects of outsourcing on labor productivity with two methods.First one is to study outsourcing through empirical and case studies.second one is to study empirical data of 2007 and 2011 by regression method.the outcome of these study is that outsourcing and labor productivity negatively correlated in 2007,the degree of outsourcing and labor productivity are positively correlated in 2011.You can see that relationship of outsourcing and labor productivity is not static with changes in the external environment,improvement the level of industrial technology,especially the improvement of service levels.Finally,this paper presents five proposals.Mainly includes the government and enterprises should change the traditional understanding of outsourcing,the government should create a favorable environment for domestic and foreign institutional package development,promoting state-owned enterprises to outsource non-core business,outsourcing government actions to promote the development of SMEs.