2009Journal of International TradeRequires access

The Measurement and Disparity of International Outsourcing Ratio:Based on the Empirical Study of China Industry Sectors

Lin Tang

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Abstract

Based on the methods of Feenstra and Hanson and China's input-output table, this paper estimates the ratio of overall outsourcing, material outsourcing and services outsourcing of 34 industrial sectors during the period from 1997 to 2006, and calculates the industrial outsourcing ratio by grouping in accordance with the factor intensity, technological level and degree of openness.Then this paper calculates the outsourcing ratio of different types of services in industrial sectors.The em-pirical results show that the degree of outsourcing in China industrial sectors has been enhanced steadily, outsourcing ratio of capital and technology intensive industry grows rapidly, outsourcing ratio of high-tech and high degree of openness industries are significantly higher than that of low-skilled and low trade openness industries;services outsourcing ratio is generally low, outsourcing ratio of production and distribution sectors is higher than that of consumption and social sectors.Based on the empirical analysis, some suggestions are put forward for upgrading the degree of outsourcing in China industrial sectors.

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What this paper is about

Based on the methods of Feenstra and Hanson and China's input-output table, this paper estimates the ratio of overall outsourcing, material outsourcing and services outsourcing of 34 industrial sectors during the period from 1997 to 2006, and calculates the industrial outsourcing ratio by grouping in accordance with the factor intensity, technological level and degree of openness.Then this paper calculates the outsourcing ratio of different types of services in industrial sectors.The em-pirical results show that the degree of outsourcing in China industrial sectors has been enhanced steadily, outsourcing ratio of capital and technology intensive industry grows rapidly, outsourcing ratio of high-tech and high degree of openness industries are significantly higher than that of low-skilled and low trade openness industries;services outsourcing ratio is generally low, outsourcing ratio of production and distribution sectors is higher than that of consumption and social sectors.Based on the empirical analysis, some suggestions are put forward for upgrading the degree of outsourcing in China industrial sectors.

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Available abstract

Based on the methods of Feenstra and Hanson and China's input-output table, this paper estimates the ratio of overall outsourcing, material outsourcing and services outsourcing of 34 industrial sectors during the period from 1997 to 2006, and calculates the industrial outsourcing ratio by grouping in accordance with the factor intensity, technological level and degree of openness.Then this paper calculates the outsourcing ratio of different types of services in industrial sectors.The em-pirical results show that the degree of outsourcing in China industrial sectors has been enhanced steadily, outsourcing ratio of capital and technology intensive industry grows rapidly, outsourcing ratio of high-tech and high degree of openness industries are significantly higher than that of low-skilled and low trade openness industries;services outsourcing ratio is generally low, outsourcing ratio of production and distribution sectors is higher than that of consumption and social sectors.Based on the empirical analysis, some suggestions are put forward for upgrading the degree of outsourcing in China industrial sectors.

Key concepts: Outsourcing, Openness to experience, Business, China, Industrial organization, Empirical research, Productivity, Knowledge process outsourcing

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