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Heterogeneous Cross-Border Outsourcing and Productivity Effect of Manufacturing Industry:from the Perspective of Value Chain

Fan Xiu-fen

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Abstract

This paper divides the heterogeneous cross-border outsourcing into material outsourcing and service outsourcing and conducts a recalculation on the outsourcing rates. Then it introduces the value-chain division system into the theoretical analysis model of the influencing mechanism of heterogeneous cross-border outsourcing on the productivity of manufacturing industry, so as to analyze the effect differences of the manufacturing industry productivity based on the panel data of the manufacturing industry classified according to factor intensity. The results of the study indicate that the service outsourcing has a significant positive effect on the overall productivity of the manufacturing industry, while the productivity effect of material outsourcing is not obvious. The heterogeneous cross-border outsourcing has different effects on the productivity of manufacturing industry with different factor intensity; the impact of service outsourcing on the productivity of capital or technology-intensive manufacturing industries is greater than that of labor or resource-intensive manufacturing industries. However, the impact of material outsourcing on the productivity of labor or resource-intensive manufacturing industries and capital or technology-intensive manufacturing industries is not significant.The improvement of the industrial environment can play a significant role in promoting the productivity of the manufacturing industry.

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What this paper is about

This paper divides the heterogeneous cross-border outsourcing into material outsourcing and service outsourcing and conducts a recalculation on the outsourcing rates. Then it introduces the value-chain division system into the theoretical analysis model of the influencing mechanism of heterogeneous cross-border outsourcing on the productivity of manufacturing industry, so as to analyze the effect differences of the manufacturing industry productivity based on the panel data of the manufacturing industry classified according to factor intensity. The results of the study indicate that the service outsourcing has a significant positive effect on the overall productivity of the manufacturing industry, while the productivity effect of material outsourcing is not obvious. The heterogeneous cross-border outsourcing has different effects on the productivity of manufacturing industry with different factor intensity; the impact of service outsourcing on the productivity of capital or technology-intensive manufacturing industries is greater than that of labor or resource-intensive manufacturing industries. However, the impact of material outsourcing on the productivity of labor or resource-intensive manufacturing industries and capital or technology-intensive manufacturing industries is not significant.The improvement of the industrial environment can play a significant role in promoting the productivity of the manufacturing industry.

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Available abstract

This paper divides the heterogeneous cross-border outsourcing into material outsourcing and service outsourcing and conducts a recalculation on the outsourcing rates. Then it introduces the value-chain division system into the theoretical analysis model of the influencing mechanism of heterogeneous cross-border outsourcing on the productivity of manufacturing industry, so as to analyze the effect differences of the manufacturing industry productivity based on the panel data of the manufacturing industry classified according to factor intensity. The results of the study indicate that the service outsourcing has a significant positive effect on the overall productivity of the manufacturing industry, while the productivity effect of material outsourcing is not obvious. The heterogeneous cross-border outsourcing has different effects on the productivity of manufacturing industry with different factor intensity; the impact of service outsourcing on the productivity of capital or technology-intensive manufacturing industries is greater than that of labor or resource-intensive manufacturing industries. However, the impact of material outsourcing on the productivity of labor or resource-intensive manufacturing industries and capital or technology-intensive manufacturing industries is not significant.The improvement of the industrial environment can play a significant role in promoting the productivity of the manufacturing industry.

Key concepts: Outsourcing, Knowledge process outsourcing, Industrial organization, Business, Productivity, Manufacturing, Service (business), Multifactor productivity

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