The Economic Effects Of Undertaking International Outsourcing For Chang-JI-TU

For the developing countries in the period of economic transition, it is effectively to promote the development of local tertiary industry and to upgrade from industry model to green economy by undertaking international service outsourcing (ISO). Many countries benefit a lot by undertaking ISO and realize that ISO contributes to the improvement of local economy. Therefore, many developing countries and regions regard undertaking ISO as their leading strategies for the local economic development. Speceially, in2009, the No.33document of the Sate Council several opinions of the state council on further implement the strategy of rejuvenating northeast China and other old industrial bases indicate that the district should improve modern service level and widen industrial field. Then develop modern logistics, characteristic tourism, culture creativity, service outsourcing, commerce exhibition and finance and insurance industry. Additionally, the district should fully take advantage of talent and R&D of the colleges and universities, research institutions and enterprises’information industry. Then develop service outsourcing of software and information to increase service outsourcing from Japan and Korea. And explore the European and American markets. The development programs of Changjitu show that Changjitu should develop the industry of software and service outsourcing and positively support Yanji etc to develop this industry by its unique location advantage, which bring opptunities and challenges for Chanjitu undertaking ISO. Thus, it is theortically and practically significant to study the economic effects of Changjitu by undertaking ISO.This thesis firstly reviews the literatures about the economic impacts of undertaking ISO on local economy. Based on the research of these years, this thesis takes Changjitu as research object and analyzes the economic effects, including employment effect, technological spillover effects, trade effects and industrial upgrading effects of Changjitu by undertaking ISO from the perspectives of theoretical study and empirical study.Based on the theories such as comparative advantage theory, transaction cost theory and the theory of industrial upgrading, this thesis theoretically analyzes that it is effective to promote the local employment, technological spillover, development of trade and industrial upgrading by undertaking ISO. Then, this thesis summarizes the status of undertaking ISO in Changjitu. Based on that summary, the thesis establishes econometric model for Changchun, Jilin and Yanji, respectively. Through the time series data from thoese cities’statistic yearbook of2003to2011, this thesis empirically analyzes employment effect, technological spillover effects, trade effects and industrial upgrading effects of those cities due to undertaking ISO by Eviews7.2. The results indicate that in Changchun and Yanji, undertaking ISO is the reason of technological spillover effects, trade effects and industrial upgrading effects at least90%confidence level, but the reason of employment effects is not obvious; in Jilin, undertaking ISO is the reason of employment effects, technological spillover effects and industrial upgrading effects at least90%confidence level, but the reason of trade effects is not obvious. Finally, based on its status and the empirical results, the thesis proposes several feasible suggestions for Changjitu.