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Factors Influencing China’s Manufacture Outsourcing——Evidence from 15 Industries

Chen Qing-pin

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Abstract

China is outsourced as well as outsourcing.With the data of 15 industries during 1992 to 2010,this paper analyzes what kinds of factors affect China’s manufacture offshore outsourcing,and concludes that Chinese outsourcing initially rose up in the 1990s but decreased in the 21st century.Outsourcing index positively connected with technology intensity,and U-shape relationship exists between outsourcing and employment.Technology advancement reduces outsourcing level,and export enhances outsourcing,but RD contributes little to outsourcing unfortunately.Finally,it puts forward the related implications.

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What this paper is about

China is outsourced as well as outsourcing.With the data of 15 industries during 1992 to 2010,this paper analyzes what kinds of factors affect China’s manufacture offshore outsourcing,and concludes that Chinese outsourcing initially rose up in the 1990s but decreased in the 21st century.Outsourcing index positively connected with technology intensity,and U-shape relationship exists between outsourcing and employment.Technology advancement reduces outsourcing level,and export enhances outsourcing,but RD contributes little to outsourcing unfortunately.Finally,it puts forward the related implications.

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Available abstract

China is outsourced as well as outsourcing.With the data of 15 industries during 1992 to 2010,this paper analyzes what kinds of factors affect China’s manufacture offshore outsourcing,and concludes that Chinese outsourcing initially rose up in the 1990s but decreased in the 21st century.Outsourcing index positively connected with technology intensity,and U-shape relationship exists between outsourcing and employment.Technology advancement reduces outsourcing level,and export enhances outsourcing,but RD contributes little to outsourcing unfortunately.Finally,it puts forward the related implications.

Key concepts: Outsourcing, China, Business, Knowledge process outsourcing, Offshore outsourcing, Offshoring, Industrial organization, Index (typography)

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