Outsourcing,Productivity and Employment: Evidence from China

This paper uses the three-year data of 1997,2002 and 2007 input-output tables for 42 sectors to calculate the outsourcing ratio of 22 industrial sectors,and to examine the influence of outsourcing on the employment and productivity of industrial sectors based on panel data models.The test results show that materials outsourcing and services outsourcing have effectively promoted the development of China′s industrial productivity level,and the effect of service outsourcing on industrial productivity is much larger than that of materials outsourcing.And the analysis results of the impact of outsourcing on industrial employment shows that services outsourcing has a positive and significant effect on industrial employment while the effect of materials outsourcing on industrial employment is not obvious.