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An Empirical Analysis of Horizontal Technology Spillover Effects of International Service Outsourcing on Chinese Manufacturing Industry

Xiaojing Kou

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Abstract

The new round of global industrial transfer is promoting the development of Chinese service outsourcing.The efficient application of interaction and integration between service outsourcing and manufacturing will facilitate the improvement of China's position in the adjustment process of global industrial structure.This paper makes an analysis of the inner mechanism of how international service outsourcing brings technology spillovers to manufacturing through forward and backward linkages,and applies the 2002 ~ 2007 input-output table and the 2001~2010 data of manufacturing industries to empirically test the technology spillover effect of international service outsourcing on different factor-intensive manufacturing industries.The results indicate that the forward spillover effect of international service outsourcing on labor-intensive and technology-intensive manufacturing industries is significant,but its backward spillover effect on capital intensive manufacturing industries is obvious,and the technology spillover effect of each service outsourcing industry on different factor-intensive manufacturing industries varies to a different degree.

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What this paper is about

The new round of global industrial transfer is promoting the development of Chinese service outsourcing.The efficient application of interaction and integration between service outsourcing and manufacturing will facilitate the improvement of China's position in the adjustment process of global industrial structure.This paper makes an analysis of the inner mechanism of how international service outsourcing brings technology spillovers to manufacturing through forward and backward linkages,and applies the 2002 ~ 2007 input-output table and the 2001~2010 data of manufacturing industries to empirically test the technology spillover effect of international service outsourcing on different factor-intensive manufacturing industries.The results indicate that the forward spillover effect of international service outsourcing on labor-intensive and technology-intensive manufacturing industries is significant,but its backward spillover effect on capital intensive manufacturing industries is obvious,and the technology spillover effect of each service outsourcing industry on different factor-intensive manufacturing industries varies to a different degree.

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Available abstract

The new round of global industrial transfer is promoting the development of Chinese service outsourcing.The efficient application of interaction and integration between service outsourcing and manufacturing will facilitate the improvement of China's position in the adjustment process of global industrial structure.This paper makes an analysis of the inner mechanism of how international service outsourcing brings technology spillovers to manufacturing through forward and backward linkages,and applies the 2002 ~ 2007 input-output table and the 2001~2010 data of manufacturing industries to empirically test the technology spillover effect of international service outsourcing on different factor-intensive manufacturing industries.The results indicate that the forward spillover effect of international service outsourcing on labor-intensive and technology-intensive manufacturing industries is significant,but its backward spillover effect on capital intensive manufacturing industries is obvious,and the technology spillover effect of each service outsourcing industry on different factor-intensive manufacturing industries varies to a different degree.

Key concepts: Outsourcing, Spillover effect, Industrial organization, Business, Manufacturing, Knowledge process outsourcing, Service (business), Tertiary sector of the economy

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