Please wait a minute...

Frontiers of Economics in China

Front Econ Chin    2011, Vol. 6 Issue (2) : 271-289
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
Download: PDF(663 KB)   HTML
Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks

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.

Keywords off-shoring      material off-shoring      service off-shoring      labor      productivity      industrial sector     
Corresponding Author(s): Hongbo Cai,   
Issue Date: 05 June 2011
 Cite this article:   
Hongbo Cai,Xiangjun Zhang. Off-Shoring and Labor Productivity: Evidence from China[J]. Front Econ Chin, 2011, 6(2): 271-289.
E-mail this article
E-mail Alert
Articles by authors
Hongbo Cai
Xiangjun Zhang
Related articles from Frontiers Journals
[1] Xiaobo He, Fang Xiao. Unintended Consequences of Lockdowns: Evidence from Domestic Helpers in Urban China[J]. Front. Econ. China, 2020, 15(4): 521-540.
[2] Lei Ning, Yuqin Wang. Quantitative Analysis of the COVID-19 Pandemic Shock to Household Consumption in China[J]. Front. Econ. China, 2020, 15(3): 355-379.
[3] Xiaoheng Zhang, Xu Tian. Firm-Level TFP Growth in the Chinese Automobile Industry[J]. Front. Econ. China, 2020, 15(1): 103-123.
[4] Kanang Amos Akims, Dianah Mukwate Ngui. Productivity and Export Performance: Micro-Level Evidence from the Manufacturing Sector in Nigeria[J]. Front. Econ. China, 2019, 14(3): 428-460.
[5] Guanfu Fang, Guanliang Hu, Lan Yao. Reference Dependent Preference and Labor Supply: Evidence from China[J]. Front. Econ. China, 2019, 14(2): 264-301.
[6] Haiwen Zhou. Coordination Costs, Market Size, and the Choice of Technology[J]. Front. Econ. China, 2019, 14(1): 131-148.
[7] Xianchun Xu. The Slowdown of China’s Economic Growth in Terms of Statistics[J]. Front. Econ. China, 2019, 14(1): 72-79.
[8] Kevin X.D. Huang. Growth and Cycles in China’s Unbalanced Development: Resource Misallocation, Debt Overhang, Economic Inequality, and the Importance of Structural Reforms[J]. Front. Econ. China, 2019, 14(1): 53-71.
[9] John Douglas Wilson, Ilkay Yilmaz. Free-Trade Agreements in a Model of Trade, Migration and Politics[J]. Front. Econ. China, 2018, 13(1): 15-31.
[10] Yi Che, Yan Zhang. Legal Knowledge, Land Expropriation, and Agricultural Development in Rural China[J]. Front. Econ. China, 2017, 12(1): 132-166.
[11] Binlei Gong. Improving the Accuracy of Estimated Returns to Education in China—Based on Employment Rate, Career Length, and Income Growth[J]. Front. Econ. China, 2017, 12(1): 113-131.
[12] Junhui Hu,Yongchong Mao,Jinghua Zhang. The Impact of Non-Labor Income Given Job Heterogeneity on Household Time Allocation: The Evidence from China[J]. Front. Econ. China, 2015, 10(1): 113-136.
[13] Tae-Seok Jang,Eiji Okano. Productivity Shocks and Monetary Policy in a Two-Country Model[J]. Front. Econ. China, 2015, 10(1): 7-37.
[14] Yanrui Wu. Productivity, Economic Growth and the Middle Income Trap: Implications for China[J]. Front. Econ. China, 2014, 9(3): 460-483.
[15] Jie Zhang. Is Public Capital Productive in China? Evidence from a Panel of Chinese Provinces[J]. Front Econ Chin, 2013, 8(3): 362-389.
Full text