The Impacts Of Service Outsourcing On The Export Sophistication Of China’s Manufacturing Industries

With intermediate trade becoming increasingly popular,more and more countries are participating in the global production division system.Through service outsourcing,the service value including R&D,finance,information and design is embedded in the final manufactured goods,which are important to international division of labor.China’s manufacturing industry has developed rapidly in recent years,but due to the gradual loss of the demographic dividend,manufacturing exports are facing “double squeeze” from domestic and foreign markets.China’s manufacturing industry need to be transformed and upgraded,and service outsourcing is an important solution to it.Improving manufacturing export sophistication through service outsourcing is of great significance for enhancing China’s export quality and high quality oriented development.Based on the related theories such as international division of labor theory,global value chain theory,transaction cost theory and resource-based theory,this thesis conducts a comprehensive study on service outsourcing and export sophistication.To achieve the above,this study firstly reviews the research progress of service outsourcing theory and export sophistication theory based on domestic and foreign scholars.Secondly,this thesis describes the status of service outsourcing in major countries of the world,and analyzes the status of China’s service outsourcing.This thesis studies the origin of export sophistication and compares it between developed and developing countries.Also,this thesis measures and analyzes the export sophistication in China’s high-tech manufacturing,middle-tech manufacturing and low-tech manufacturing sectors.Thirdly,this thesis takes China’s manufacturing industry as research object and investigates the effects of service outsourcing on export sophistication by using panel data of China’s export sophistication of manufacturing sectors in 2005-2014.These are empirical conclusions:(1)The impact of service outsourcing on China’s export sophistication in manufacturing sectors presents a U-shaped relationship that first declines and then rises.When the service outsourcing is at the low level,it is easy to be “locked in” to the low-end link of the global value chain,which is not conducive to the improvement of the export sophistication.When the service outsourcing exceeds a certain threshold,service outsourcing can significantly promote export sophistication and achieve technology upgrades.(2)Technology spillover effects and scale effects moderates the positive relationship between service outsourcing and export sophistication.(3)From the perspective of the mode of service outsourcing,the impact of KPO on export sophistication is higher than ITO and KPO;The impact of service outsourcing on export sophistication of high-tech manufacturing sectors is higher than that of mediumtech manufacturing and low-tech manufacturing sectors.This thesis finally incorporates theoretical results and empirical conclusions,and proposes countermeasures to accelerate servitization,standardize service outsourcing management,vigorously develop high-end service outsourcing and strengthen technological innovation.