Abstract: This paper analyzes the dynamic mechanism of multinational outsourcing intensity and outsourcing model on the local enterprises productivity based on relationship among enterprises in the GVC. The paper finds that the relationship between multinational outsourcing intensity and local enterprises productivity is significantly inverted U-shaped with 396 enterprises data distributing Hangzhou, Ningbo, Huzhou, Wenzhou. Outsourcing model can be divided into two types: value chain driven model and value chain governance model. The results show that the effect of value chain driven model on productivity has some uncertainty. But the effect of value chain governance model is significant. Local enterprise productivity is declining with more control of transnational corporations. The results imply that it’s the right developing way for our local enterprises to actively develop independent technical capability after they obtain certain technical ability through outsourcing.
Keywords: Multinational Outsourcing, Global Value Chain, Productivity
source:Finance & Trade Economics ,No1,2014