China's policy of encouraging export processing has been the topic of much discussion in the academic literature and … on subsequent firm level productivity. These productivity effects are shown to be larger than those accruing to firms who … of the productivity variable. We also find that export processors gain more when entering the industrialised North rather …

's productivity. We compare outsourcing in domestic with foreign-owned establishments. Our empirical results suggest that high wages …-owned firms have higher levels of outsourcing than domestic establishments. In the productivity analysis we find that an … establishment's outsourcing intensity is positively related to its labour productivity and total factor productivity growth and that …