Business, Management and Accounting
8 years ago

Service outsourcing from manufacturing boosts productivity growth in Chinese services.

China Industrial Economy
Service Outsourcing from Manufacturing and Productivity Growth of Services in China
Hao Liu

Paper Summary

Service outsourcing from manufacturing in China boosts both output and labor input in the service industry in the short term. However, it may slow down productivity growth in the service sector. Over time, the negative effects diminish, and service industry catches up with manufacturing through innovation and productivity enhancements.

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