Impact of Reverse Service Outsourcing on Productivity in China:An Empirical Analysis on Producer Service Industries

Based on the context of service outsourcing,this paper quantitative-ly analyzes the impact of reverse service outsourcing to producer service indus-tries on productivity in China.Based on the panel data of 18 industries from 2004-2009,and input-output table in 2002 and 2007,the paper calculates the pro-ducer service inputs,reverse service outsourcing(RSOS) and local service out-sourcing(LSOS) across industries.Conclusions are that due to the low scale and the preliminary development of service outsourcing in China,there is a negative effect of RSOS on productivity;however,it also proves that there is a decreas-ing negative impact of RSOS on future productivity,and probably it could be positive;in addition,the change of RSOS exerted a positive impact on the change of productivity,therefore expanding the scale of RSOS could reduce the negative impact.Meanwhile,the paper also gets the conclusions on industry-lev-el,which could help the development of service outsourcing.