Abstract: This paper analyzes the behavior and determinants of China’s industrial international outsourcing. Based on non-competitive input-output table and data, this paper first measures international outsourcing of China’s manufacturing industry for the period of 1995-2005. Then we use fixed-effect model to investigate the determinants of international outsourcing. The results show that international outsourcing in China is high-technology seeking instead of low-cost seeking. International outsourcing is positively related to foreign FDI ratio, transaction conditions and company scales. However, the link between outsourcing and state-owned ratio is negative. The companies should participate in the global economy through outsourcing, and take full advantage of resources, thus upgrading industrial structure.
Keywords: Off-shoring Outsourcing, Manufacturing Outsourcing, High-technology Seeking
source:Finance & Trade Economics ,No.3,2013