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Friend-shoring, near-shoring, and reshoring in factories America, Asia, and Europe amid rising geopolitical tensions

Author

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  • Ando, Mitsuyo
  • Hayakawa, Kazunobu
  • Kimura, Fukunari
  • Mukunoki, Hiroshi

Abstract

This study empirically investigates changes in sourcing patterns across three major production hubs: Factory America, Factory Asia, and Factory Europe. Specifically, using international and intra-national trade data from 2015 to 2024, we examine four types of “shoring” strategies, i.e., political friend-shoring, economic friend-shoring, near-shoring, and reshoring, simultaneously. Our findings provide quantitative evidence of increasing reliance on political friend-shoring, weakening dependence on near-shoring, and recent progress in reshoring amid heightened geopolitical risks, whereas economic friend-shoring appears unattractive on average. Moreover, we show that greater product substitutability does not necessarily lead to more significant changes in sourcing. We also revealed a notable difference across regions in political friend-shoring. The degree of its dependence is consistently most substantial for Factory America, while political motivations remain relatively unattractive for Factory Asia, with some specific variations even within the same Factory.

Suggested Citation

  • Ando, Mitsuyo & Hayakawa, Kazunobu & Kimura, Fukunari & Mukunoki, Hiroshi, 2026. "Friend-shoring, near-shoring, and reshoring in factories America, Asia, and Europe amid rising geopolitical tensions," European Journal of Political Economy, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:poleco:v:93:y:2026:i:c:s0176268025001648
    DOI: 10.1016/j.ejpoleco.2025.102804
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    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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