The Effects Of Offshoring Service On China's Industrial Structure Upgrading

On the background of industrial globalization, offshoring service setting off a new wave of international industrial transfer, it's also being the future trend of China's foreign trade, especially its profound impact on international division and industrial development. Whether offshoring service can take up responsibilities to promote China's industrial upgrading? This article tries to study the effects of offshoring service on China's industrial structure change after her opening up theoretically and empirically. Based on a review of theories and researches of outsourcing service and industrial structure, the article introduces an intra-product model to demonstrate the effects of offshoring service on the industrial upgrading in one country. Meanwhile, it tries to discuss the influence paths and carries on an empirical test. Aimed at empirical testing result, this article put forward some corresponding countermeasures.After the literature review of relevant theories and researches, the article introduces an intra-product model by Feenstra and Hanson (1996), and then utilizes the comparative static method in economics to analyze offshore outsourcing. The model proves that offshore outsourcing will help"dynamic climbing"in the global value chain clusters among the participating industries in the opening economical conditions, and manifests the promotion of offshoring service on the industrial upgrading. The article further analyzes and discusses the influence paths of the promotion of offshoring service on the industrial upgrading. Based on the above analysis,the empirical study tells that offshoring service has great effect on the upgrading of China's industrial structure. Eventually, a number of policies on how to speed up the development of offshoring service and thus gain better development on China's industrial upgrading are suggested.