ARTYKUŁ ORYGINALNY
International Outsourcing in China and India: A Sectoral Comparison Using Input-Output Analysis
,
 
,
 
 
 
Więcej
Ukryj
1
Economics, Sirnak University, Turkey
 
2
Department of Management Information Systems, Şırnak University, Faculty of Economics and Administrative Science, Turkey
 
3
Department of Accounting and Taxation, Çukurova University, Pozanti Vocational School, Turkey
 
Zaznaczeni autorzy mieli równy wkład w przygotowanie tego artykułu
 
 
Data nadesłania: 03-10-2025
 
 
Data ostatniej rewizji: 09-12-2025
 
 
Data akceptacji: 11-12-2025
 
 
Data publikacji online: 05-05-2026
 
 
Data publikacji: 05-05-2026
 
 
Autor do korespondencji
Ömer Demir   

Economics, Sirnak University, ŞIRNAK ÜNİVERSİTESİ MEHMET EMİN ACAR KAMPÜSÜ. LİSA, 73000, Merkez, Turkey
 
 
Economic and Regional Studies 2026;19(1):22-41
 
SŁOWA KLUCZOWE
KODY KLASYFIKACJI JEL
F10
F15
 
DZIEDZINY
STRESZCZENIE
Subject and purpose of work: This study examines the extent of international outsourcing in China and India across the total economy and selected sectors, including industry, agriculture, manufacturing, services, and technology. Materials and methods: The analysis uses Input–Output Tables from the OECD database for the years 1995, 2008, 2009, and 2018, applying established outsourcing indices to measure import dependency at sectoral and technological levels. Results: Results indicate that outsourcing in India increased steadily until 2008/2009, while in China it followed a more fluctuating pattern. In both countries, outsourcing intensity is highest in the manufacturing sector. Technological classification reveals that China relies more on high-tech sectors, whereas India shows higher dependency in medium-high-tech and medium-low-tech sectors. The findings also suggest that during periods of economic crisis, outsourcing dependency may expose production processes to vulnerabilities. Conclusions: The study contributes to the literature by providing a comparative sectoral and technological assessment of international outsourcing in China and India using Input–Output data.
REFERENCJE (67)
1.
Amighini, A., A. (2012), China and India in the international fragmentation of automobile production. China Economic Review, 23(2), pp. 325-341.
 
2.
Amiti, M. and Wei, S. J. (2004), 2004. Fear of service outsourcing: Is it justified?, NBER working paper 10808.
 
3.
Aubuchon et al., (2012), The extent and impact of outsourcing: Evidence from Germany, Federal Reserve Bank of St. Louis Review, 94(4), pp.287-304. doi:https://doi.org/10.20955/r.94.....
 
4.
Bachmann, R. and Braun, S. (2011), The impact of international outsourcing on labour market dynamics in Germany, Scottish Journal of Political Economy, 58(1), 1-28. doi: https://doi.org/10.1111/j.1467....
 
5.
Bandyopadhyay et al. (2014), International oligopoly, barriers to outsourcing and domestic employment, Canadian Journal of Economics, 47(4), pp. 1372-1386. doi:https://doi.org/10.1111/caje.1....
 
6.
Bilan et al. (2017), Outsourcing in international economic relations, Montenegrin Journal of Economics, 13(3), pp. 175-185. 10.14254/1800-5845/2017.13-3.14.
 
7.
Bottini et al. (2007), Offshoring and the labour market: What are the issues?, Economic and labour market paper 2007. 11. International Labour Office.
 
8.
Cadarso et al. (2008), The EU enlargement and the impact of outsourcing on industrial employment in Spain, 1993-2003, Structural Change and Economic Dynamics, 19, pp.95-108. doi:10.1016/j.strueco.2007.11.008.
 
9.
Chadee, D. and Raman, R. (2009), International outsourcing of information technology services:review and future directions, International Marketing Review, 26(4,5), pp.411-438. doi:10.1108/02651330910971968.
 
10.
Chalaby, J. (2019), Outsourcing in the UK television industry: A global value chain analysis, Communication Theory, 29(2), pp. 169-190. doi: 10.1093/ct/qty024.
 
11.
Chen, Q. and Shen, Y. (2021), The impacts of offshore and onshore outsourcing on China’s upgrading in global value chains: Evidence from its manufacturing and service sectors, Structural Change and Economic Dynamics, 59, pp. 263-280. https://doi.org/10.1016/j.stru....
 
12.
Choi, J., Y. and Yu, E., S. (2019), International Outsourcing, Unemployment and Welfare: A Re-Examination, East Asian Economic Review, 23(3), pp.261-284. doi:http://dx.doi.org/10.11644/KIE....
 
13.
Di Berardino, C., D’Angelo, S., & Sarra, A. (2025). Can deindustrialisation be reversed? The role of outsourcing and foreign trade in the structural change of the main European economies (2010-20). Cambridge Journal of Economics, 49(4), 731-753 https://doi.org/10.1093/cje/be....
 
14.
Dolgui, A., & Proth, J.,M. (2013). Outsourcing: Definitions and Dnalysis. International Journal of Production Research, 51(23-24), 6769-6777. doi:http://dx.doi.org/10.1080/0020....
 
15.
Duan et al. (2018), Why has China’s vertical specialization declined?, Economic Systems Research, (2), pp. 178-200.doi:https://doi.org/10.1080/095353....
 
16.
Egger, P., H. and Egger, H. (2006), International Outsourcing and the Productivity of Low-Skilled Labor in the EU, Economic Inquiry, 44(1), pp. 98-108.
 
17.
Feenstra, R., C. and Hanson, G. H. (1999), The Impact of Outsourcing and High-Technology Capital on Wages: Estimates for the United States, 1979-1990.” The Quarterly Journal of Economics, 114 (3), pp.907-940. doi:https://doi.org/10.1162/003355....
 
18.
Feenstra, R. and Hanson, G. (1999), The impact of outsourcing and high-technology capital on wages: Estimates for the United States, 1979-1990, The Quarterly Journal of Economics, 114(3), pp. 907-940.
 
19.
Geishecker, I. (2007). Assessing the extent and development of international outsourcing in the euro area, document reprographié, Université de Göttingen. doi:https://scholar.google.com/sch... hl=tr&as_sdt=0%2C5&q=Assessing+the+extent+and+development+of+international+outsourcing+in+the+euro+area&btnG.
 
20.
Geishecker, I. and Görg, H. (2005), Do unskilled workers always lose from fragmentation?, North American Journal of Economics and Finance, 16, pp.81-92. doi:10.1016/j.najef.2004.11.002.
 
21.
Geishecker, N. and Görg, H. (2008), Winners and losers: A Micro-level Analysis of International Outsourcing and Wages, The Canadian Journal of Economics, 41(1), pp. 243-270.
 
22.
Gencer, S. (2022). Measuring international outsourcing trade in Türkiye, Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 31(1), pp. 73-88.
 
23.
Goldberg et al. (2009). Trade liberalization and new imported inputs, American economic review, 99(2), pp.494-500. doi:10.1257/aer.99.2.494.
 
24.
Grossman, G., M. and Helpman, E. (2002), Outsourcing in a global economy, National Bureau of Economic Research (NBER), Working Paper 8728. http://www.nber.org/papers/w87....
 
25.
Gozgor, G. and Can, M. (2017). Does export product quality matter for CO 2 emissions? Evidence from China, Environmental Science and Pollution Research 24, pp.2866-2875. doi:10.1007/s11356-016-8070-6.
 
26.
Görg, H. and Hanley, A. (2005), International outsourcing and productivity: evidence from the Irish electronics industry, The North American Journal of Economics and Finance, 16(2), pp. 255-269.
 
27.
Hashimoto, K. (2010), International outsourcing, the real exchange rate and effective demand, Metroeconomica, Vol. 62 No. 2, pp. 305-327. https://doi.org/10.1111/j.1467....
 
28.
Hijzen, A. (2005), A bird’s eye view of international outsourcing: data, measurement and labour demand effects, Économie internationale, 104, pp. 45-63. doi:10.3917/ecoi.104.0045.
 
29.
Hijzen, A. (2007), International Outsourcing, Technological Change, and Wage Inequality, Review of International Economics, 15(1), pp.188-205. doi:10.1111/j.1467-9396.2006.00623.x.
 
30.
Hijzen et al. (2005). International Outsourcing and the Skill Structure of Labour Demand in the United Kingdom, The Economic Journal, 115(506), pp.860-878. doi:https://doi.org/10.1111/j.1468....
 
31.
Hijzen et al. (2010), Does Offshoring Pay? Firm-Level Evidence from Japan, Economic Inquiry, 48(4), pp. 880-95.
 
32.
Horgos, D. (2008), International Outsourcing – Some Measurement Problems: An Empirical Analysis of Outsourcing Activities, Germany: Helmut Schmidt University- University FAF Hamburg.
 
33.
Ho, W.,M. (2021). International outsourcing, exchange rates, and monetary policy. Journal of International Money and Finance, (118), 1-34. doi:https://doi.org/10.1016/j.jimo....
 
34.
Horgos, D. (2009), Labor market effects of international outsourcing: How measurement matters, International Review of Economics and Finance, 18, pp.611-623. doi:10.1016/j.iref.2008.10.006.
 
35.
Hsu, K. and Chiang, H. (2014), The impact of international outsourcing on u.s. workers’ wages: rethinking the role of innovation, International Journal of Economics and Finance, 6(5), doi:https://doi.org/10.5539/ijef.v....
 
36.
Hummels et al. (2001), The nature and growth of vertical specilization in world trade, Journal of International Economics, (54), pp.75-96. doi:https://doi.org/10.1016/S0022-....
 
37.
Hummels et al. (1998). Vertical specialization and the changing nature of world trade, Federal Reserve Bank of New York Economic Policy Review, 4(2), pp.79-99.
 
38.
Ikumapayi et al., (2020), Overview of recent advancement in globalization and outsourcing initiatives in manufacturing systems, Materials Today: Proceedings, 26, pp.1532-1539. doi:https://doi.org/10.1016/j.matp....
 
39.
Johansson, C. and Reischl, E. (2009), Offshoring to China A case study of an SMEs offshoring to China, Baltic Business School, Growth Through Innovation and International Marketing, Master Thesis. Kalmar/ Sweden.
 
40.
Kaipia, R. and Turkulainen, V. (2017). Managing integration in outsourcing relationships – the influence of cost and quality priorities, Industrial Marketing Management, 61, pp. 114-129. doi:https://doi.org/10.1016/j.indm....
 
41.
Kar, S., & Banerjee, S. (2022). Pollution abatement and production outsourcing in India. Journal of Industry, Competition and Trade, 22(1), 83-97. https://doi.org/10.1007/s10842....
 
42.
Kite, G. (2012). The Impact of Information Technology Outsourcing on Productivity and Output: New Evidence from India. Procedia Economics and Finance, 1, pp. 239-248.
 
43.
Lahiri, S., Karna, A., Kalubandi, S., C., & Edacherian, S. (2022). Performance implications of outsourcing: A meta-analysis. Journal of Business Research, 139, 1303-1316. https://doi.org/10.1016/j.jbus....
 
44.
Lee, S. H., & Mol, M. (2024). International outsourcing. In Encyclopedia of International Strategic Management (pp. 235-236). Edward Elgar Publishing. https://doi.org/10.4337/978180....
 
45.
Maelah et al. (2010). Accounting outsourcing turnback: process and issues, Strategic Outsourcing: An International Journal, 3(2), pp. 226-245. doi:https://doi.org/10.1108/175382....
 
46.
Maziarczyk, A. (2020). Impact of outsourcing on the productivity of Polish industrial enterprises, The Małopolska School of Economics in Tarnów Research Papers Collection, 45(1), pp.41-52. doi:10.25944/znmwse.2020.01.4152.
 
47.
Miller, R., E. and Blair, P., D. (2009), Input-Output Analysis Foundation and Extensions, United Kingdom: Cambridge University Press.
 
48.
Mishina, Z., A., Kozlov, S., N., Sidorova, N., P., Makarychev, V., A., Makushev, A., E., & Ivanov, E., A. (2019). Accounting outsourcing in small business agribusiness: “terms of reference”. IOP Conf. Series: Earth and Environmental Science(433), 1-12. doi:10.1088/1755-1315/433/1/012021.
 
49.
Molnar et al. (2007). The Internationalisation of production, international outsourcing and employment in the OECD, OECD Economics Department Working Papers, No. 561. OECD Publishing.doi:10.1787/167350640103.
 
50.
Mukherjee, A. and Tsai, Y. (2010), International outsourcing and welfare reduction: an entry-deterrencestory, Manchester School, 78(6), pp. 647-659. doi:https://doi.org/10.1111/j.1467....
 
51.
Mukherjee, S. and Chanda, R. (2019), Trade liberalization and Indian manufacturing MSMEs: Role of firm characteristics and channel of liberalization, The European Journal of Development Research 31 pp. 984-1062. doi:https://doi.org/10.1057/s41287....
 
52.
Nartey, J. (2025). When the West Stops Outsourcing: The Technological Turn against Eastern Labour. Available at SSRN 5287313. http://dx.doi.org/10.2139/ssrn....
 
53.
Olsen, K., B. (2006). Productivity impacts of offshoring and outsourcing: A review, OECD Directorate for Science, Technology and Industry (STI). Working Paper 2006/1.
 
54.
Park, J. (2024). Outsource to India: The impact of service outsourcing to India on the labor market in the United States. Bulletin of Economic Research, 76(1), 203-222. https://doi.org/10.1111/boer.1....
 
55.
Rumbaugh, T. and Blancher, N. (2004). “China: International trade and WTO accession”, IMF Working Paper WP/04/36.
 
56.
Song, J., Peng, H., & Chen, X. (2025). China’s offshore service outsourcing-oriented structural analysis by floating exchange rate system under internet of things and cloud computing. In Proceedings of the 2nd International Conference on Machine Intelligence and Digital Applications (pp. 198-213). https://doi.org/10.1145/374446....
 
57.
Swenson, D. and Chen, H. (2018). The Effects of Managerial Incentives on the Organization of Processing Trade, W. Kohler and Y. Erdal (Ed.) Developments in Global Sourcing, The MIT Press, London.
 
58.
UNCTAD. (2023). https://unctad.org/.
 
59.
Uygun, Y., Gotsadze, N., Schupp, F., Gzirishvili, L., & Tindjou Nana, B. S. (2023). A holistic model for understanding the dynamics of outsourcing. International Journal of Production Research, 61(4), 1202- 1232. https://doi.org/10.1080/002075....
 
60.
Terzioğlu, N. and Subaşat, T. (2017), İhracatın ithalata bağımlılığındaki artış cari açıkların belirleyicisi değildir, İktisat ve Toplum, December 2017, 86, 62-67.
 
61.
Thakur-Wernz, P., & Wernz, C. (2022). Does R&D offshore outsourcing improve innovation in vendor firms from emerging economies? A study of biopharmaceutical industry in India. International Journal of Emerging Markets, 17(6), 1373-1403. https://doi.org/10.1108/IJOEM-....
 
62.
Wang, L., Chen, Y., Ramsey, T., & Hewings, G. (2025). Digital technology and service tradability: evidence from patent innovations and knowledge utilization. Humanities and Social Sciences Communications, 12(1), 1-18. https://doi.org/10.1057/s41599....
 
63.
 
64.
Xiang et al. (2022). The impact of intermediate goods imports on energy efficiency: Empirical evidence from Chinese cities, International Journal of Environmental Research and Public Health, 19. https://doi.org/10.3390/ijerph....
 
65.
Xing, Y. (2022), China and global value chain restructuring, China Economic Journal, 15(3), 310-329. https://doi.org/10.1080/175389....
 
66.
Ye, Q., & Yan, J. (2024). The effect of service outsourcing on labor income share: Measuring labor income share from the global value chains perspective. Plos one, 19(9), e0309656. https://doi.org/10.1371/journa....
 
67.
Zulaykho et al. (2022). Measuring global outsourcing and its effect on firms productivity, Journal of Hunan University Natural Sciences, 49(12), pp. 1565-1573.
 
eISSN:2451-182X
ISSN:2083-3725
Journals System - logo
Scroll to top