2013•Zhongguo liutong jingjiRequires access

The Productivity Effect of Logistics Outsourcing in Manufacturing Industries in China

Liang Hong-yan

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Abstract

With the help of input-output tables in the year 1997,2002 and 2007,the rates of logistics outsourcing of 28 Chinese manufacturing industries have been measured,the effects of outsourcing on productivity of manufacturing industries are analyzed,and the effects of technological progress on productivity growth and logistics outsourcing decision are studied.The results show that logistics outsourcing is negatively related to the productivity of manufacturing industries and bringing about capital-saving technical progress and neutral technical retrogress.The negative effect on productivity in the labor-intensive and high-tech industries is smaller than that of capital-intensive and low-tech industries.The results also reveal that technological progress significantly improves the productivity growth effect of logistics outsourcing,and technological progress decreases logistics outsourcing activities in large-scale industries through changing the structure between its internal coordination cost and markets trade cost to expand its boundary.

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What this paper is about

With the help of input-output tables in the year 1997,2002 and 2007,the rates of logistics outsourcing of 28 Chinese manufacturing industries have been measured,the effects of outsourcing on productivity of manufacturing industries are analyzed,and the effects of technological progress on productivity growth and logistics outsourcing decision are studied.The results show that logistics outsourcing is negatively related to the productivity of manufacturing industries and bringing about capital-saving technical progress and neutral technical retrogress.The negative effect on productivity in the labor-intensive and high-tech industries is smaller than that of capital-intensive and low-tech industries.The results also reveal that technological progress significantly improves the productivity growth effect of logistics outsourcing,and technological progress decreases logistics outsourcing activities in large-scale industries through changing the structure between its internal coordination cost and markets trade cost to expand its boundary.

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Available abstract

With the help of input-output tables in the year 1997,2002 and 2007,the rates of logistics outsourcing of 28 Chinese manufacturing industries have been measured,the effects of outsourcing on productivity of manufacturing industries are analyzed,and the effects of technological progress on productivity growth and logistics outsourcing decision are studied.The results show that logistics outsourcing is negatively related to the productivity of manufacturing industries and bringing about capital-saving technical progress and neutral technical retrogress.The negative effect on productivity in the labor-intensive and high-tech industries is smaller than that of capital-intensive and low-tech industries.The results also reveal that technological progress significantly improves the productivity growth effect of logistics outsourcing,and technological progress decreases logistics outsourcing activities in large-scale industries through changing the structure between its internal coordination cost and markets trade cost to expand its boundary.

Key concepts: Outsourcing, Productivity, Business, Industrial organization, Knowledge process outsourcing, Manufacturing, China, Technological change

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