The Impact of Outsourcing on Manufacturing Value Added

• Main Authors: Ya-Jyun Zeng, 曾雅均
• Other Authors: Shih-Mo Lin
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/56785321596971923102

碩士 === 中原大學 === 國際經營與貿易研究所 === 102 === In recent years, the tendency towards trade liberalization has heated up the activities of international trade, foreign investment and outsourcing gradually. In particular, the gradual removal of the tariff barriers and the rapid and convenient cross-border transport have rapidly increased the proportion of trade in intermediate goods. This trend has great impact on both home and host country’s industries. Several studies have suggested the potential benefit of outsourcing by firm-level data. However, there have been only few attempts to analyze the relationship between outsourcing and value added at the industry level. This research tries to fill this void by providing alternative insights using multi-regional inter-industry data and panel data models. The data source of this study is the world input-output database (WIOD) compiled by the European Union. The dataset covers 35 industries (14 manufacturing industries) in 41 regions in the world, over the period 1995-2011. We define outsourcing as the share of imported intermediate inputs in the total purchase of non-energy materials. Our empirical results show that outsourcing, the share of industry value added, and the share of goods sold to final demand have contributed substantially to the increase in value added ratio. Our results also show that the proportion of trade in intermediate goods bring significant negative effects to industry value-added ratio. This explains why there has been a decreasing trend for industry value-added ratio in most countries since 1995.