Off-Shoring and Labor Productivity: Evidence from China
Off-Shoring and Labor Productivity: Evidence from China
Hongbo Cai1(), Xiangjun Zhang2
1. School of Economics and Business Administration, Beijing Normal University, Beijing 100875, China; 2. School of Mathematical Sciences, Beijing Normal University, Beijing 100875, China
This paper uses input-output tables to measure material off-shoring, service off-shoring and narrow sense material off-shoring on 33 industries by use of DJ index (Daveri and Jona-Lasinio, 2008), not FH index with “the same proportion assumption” (Feenstra and Hanson, 1996). It estimates the effects of the off-shoring on labor productivity by panel data model. Our results show that, the off-shoring is generally positively associated with labor productivity, and service off-shoring has more significant effect than the material off-shoring. There are some key aspects to be discussed in detail, including: (1) the heavy industry’s material off-shoring increases obviously and service off-shoring declines in recent years, and the former’s contribution to productivity growth is less than the latter; (2) the demand of chemical industry for service off-shoring significantly increases and its positive marginal effect on productivity growth is stronger than the material because of industry transformation and upgrading; and (3) the current intensive material off-shoring of textile, equipment manufacturing industries greatly contributes to productivity growth, while the positive effect from service off-shoring on labor productivity has initially boomed. In conclusion, we provide some suggestions for further development of China’s off-shoring.
. Off-Shoring and Labor Productivity: Evidence from China[J]. Frontiers of Economics in China, 2011, 6(2): 271-289.
Hongbo Cai, Xiangjun Zhang. Off-Shoring and Labor Productivity: Evidence from China. Front Econ Chin, 2011, 6(2): 271-289.