Business, Management and Accounting
8 years ago

Logistics outsourcing in China negatively impacts productivity in manufacturing industries.

Zhongguo liutong jingji
The Productivity Effect of Logistics Outsourcing in Manufacturing Industries in China
Liang Hong-yan

Paper Summary

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Logistics outsourcing in Chinese manufacturing industries can affect productivity. The study looked at data from 1997, 2002, and 2007 to measure outsourcing rates and analyze its impact on productivity. Results show that outsourcing logistics can decrease productivity, especially in capital-intensive and low-tech industries. However, technological progress can help improve the productivity growth effect of outsourcing. Labor-intensive and high-tech industries are less affected by the negative productivity impact of outsourcing. Additionally, technological progress can reduce outsourcing activities in large-scale industries by changing the balance between internal coordination costs and market trade costs.