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How nearshoring reshapes global deindustrialization

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  • Lábaj, Martin
  • Majzlíková, Erika

Abstract

Although recent decades were marked by within-country deindustrialization, this was not observed on the global level, as jobs moved from smaller, highly productive countries to large, less productive ones. We provide new empirical evidence that this trend reversed in the mid-2010s. We compiled annual employment data for 64 industries in 45 economies for 2010–2020 that are compatible with the multi-regional input–output tables provided by Eurostat in the FIGARO 2022 database. The data show that global employment generated by vertically integrated manufacturing activities has started to decline. The regionalization of global value chains was identified as the main driver that has reversed this trend, as the level of offshoring from most regions has declined.

Suggested Citation

  • Lábaj, Martin & Majzlíková, Erika, 2023. "How nearshoring reshapes global deindustrialization," Economics Letters, Elsevier, vol. 230(C).
    • Handle: RePEc:eee:ecolet:v:230:y:2023:i:c:s0165176523002641
    DOI: 10.1016/j.econlet.2023.111239
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    References listed on IDEAS

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    4. Daria Ciriaci & Daniela Palma, 2016. "Structural change and blurred sectoral boundaries: assessing the extent to which knowledge-intensive business services satisfy manufacturing final demand in Western countries," Economic Systems Research, Taylor & Francis Journals, vol. 28(1), pages 55-77, March.
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    More about this item

    Keywords

    Input–output analysis; Deindustrialization; Manufacturing; Nearshoring;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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