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Quantifying reshoring at the macro‐level—Measurement and applications

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  • Astrid Krenz
  • Holger Strulik

Abstract

In this paper, we develop a metric of reshoring at the macroeconomic level, at the level of industries or countries. Our dynamic measure computes the change in the domestic–foreign input ratio and therewith captures the idea of moving production back to the home country. Additional conditions ensure that the measure is confined to actual reshoring and does not pick up, for example, mere changes in the scale and composition of production. We show that reshoring is only weakly approximated by reduced offshoring. We compute the reshoring intensity from the World Input Output Database and illustrate the use of the data with several applications. Specifically, we compute trends in reshoring for examples of countries and industry sectors, we investigate reshoring from China, and examine the impact of an increasing degree of automation for reshoring in emerging and developing economies.

Suggested Citation

  • Astrid Krenz & Holger Strulik, 2021. "Quantifying reshoring at the macro‐level—Measurement and applications," Growth and Change, Wiley Blackwell, vol. 52(3), pages 1200-1229, September.
    • Handle: RePEc:bla:growch:v:52:y:2021:i:3:p:1200-1229
    DOI: 10.1111/grow.12513
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    References listed on IDEAS

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