Outsourcing and Labor Productivity: on the Basis of Error Correction Model
CHEN Qing-ping1, LIU Qing2
1.School of International Business Administration, Shanghai University of Finance and Economics, Shanghai 200439, China; 2.School of Economic, Hefei University of Technology, Hefei 230009,China
Abstract:
With Input-output table this paper analyzes the outsourcing index by unit root test and cointegration test of outsourcing and per capital real output of 15 industries. It is concluded that outsourcing increases initially and reduces afterwards, and affects output negatively—the elasticity is -0.1 to -0.2 in short run and -0.3 to -0.5 in long run.