(picture source: Pixabay)

Recently, a paper co-authored by Professor Shi Bingzhan and doctoral student Li Jiantong was published in the fourth issue of the top management journal, Management World, in 2020.

The paper is titled "Whether the Internet Promotes Division of Labor: Evidence from Chinese Manufacturing Companies". The thesis empirically analyzes the influence of the Internet on the division of labor in Chinese manufacturing enterprises and verifies its theoretical mechanism. The paper found that the increase in Internet penetration rate can significantly promote the division of labor in Chinese manufacturing enterprises. The higher the Internet penetration rate, the greater the promotion effect; this is mainly achieved by reducing the search costs of enterprises rather than contract costs. Further analysis shows that the promotion effect of the Internet on the division of labor of enterprises will not be replaced by other means of communication and transportation; the increase in the Internet penetration rate in other provinces can only promote the improvement of the division of labor in connected enterprises; the division of labor in state-owned enterprises is not sensitive to the role of the Internet; the Internet can only Increasing the outsourcing ratio of direct inputs in intermediate materials cannot increase the outsourcing ratio of intermediate inputs in producer services. After considering endogenous issues and other statistical errors, the above conclusions are still generally sound. The thesis advances the understanding of the economic effects of the Internet.

Management World is an academic journal sponsored by the director of the Development Research Center of the State Council. Founded in 1985, it is a top economic and management journal recognized by domestic universities and research institutions.