Outsourcing boosts labor productivity in Guangdong, especially in service industries.
The study looked at how outsourcing affects labor productivity in different industries in Guangdong province. They found that both material outsourcing and service outsourcing can increase labor productivity, with service outsourcing having a stronger impact. Service outsourcing is more beneficial for industries that rely more on capital than on labor. Material outsourcing doesn't show as clear of a difference between industries.