Empirical Study Of The Impact Of International Outsourcing-undertaking On The Industrial Development Of China's Manufacturing Sector

In the background of economic globalization, the international outsourcing business are increasingly becoming an important multinational companies operating management model in developed countries. Multinational companies in Europe and the United States gradually operate its manufacturing in the vast number of developing countries and shift its strategic focus to these places, which form a outsourcing-Production at the core package in the global production value chain. In recent years, a large number of the outsourcing activities of multinational companies are entering China, more and more Chinese enterprises participate in the global specialization system through undertaking the global outsourcing production for the transnational corporations. Now China's processing trade enterprises which account for a large part of China's exports , and the large number of OEM manufactories undertake most of the production activities of multinational companies outsourcing.Rapid development of the international outsourcing market endow with great opportunities and challenges for Chinese enterprises who are now facing the international market. This paper is based on this background, studies whether China's manufacturing industry can benefit in undertaking outsourcing, as well as China how to earn greater benefits from the growing outsourcing market.This paper is divided into five chapters. ChapterⅠis an Introduction, ChapterⅡsystematically introduces the concept and the classification of outsourcing, and explaines the motives of international outsourcing on the perspective of Transaction Cost Theory , Core Competence Theory and Global Value Chain Theory, then uses a theoretical model to analyse the economic effects of undertaking international outsourcing , decomposing the effects into "industrial optimization effect"," industrial developing effect " and "expansion of employment effects". ChapterⅢdescribe the new developing trend of the international outsourcing market, and expound the current status of international outsourcing undertaking in China's manufacturing sector. ChapterⅣis the core part of this paper, mainly from the point of view of the undertaking country, outsourcing index was constructed ,using the input-output table of 1995 - 2005 of China to measure the extent of international outsourcing undertaked in China. A panel data in accordance with three years about 1995, 1997and 2002 In the 22 manufacturing industries ,is used in the empirical analysis about the relations between China international outsourcing undertaking level and development of the manufacturing industry . Based on the theoretical analysis in chapterⅡ, we analyse the effects by three aspects--"industrial optimization effect"," industrial developing effect" and "expansion of employment effects" . We discover that undertaking international outsourcing play a facilitating role in the development of China's manufacturing industry. At the same time, undertaking international outsourcing has helped expand the employment in China ,raise the level of technology to improve labor productivity, thus facilitating faster development of the manufacturing sector. The final chapter point out the main constraints in China's manufacturing industry now exists to undertake international outsourcing , then put forward some proposals to promote our country's manufacturing sector to undertake international outsourcing, which is of positive significance.