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Tracking global industry relocation and its economic and environmental impacts 1997–2023

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  • Zhang, Yu
  • Tian, Kailan
  • Liu, Zhibiao

Abstract

A new wave of industry relocation has been sweeping across the world. This study develops a novel analytical framework to quantify the global industry relocation pattern from 1997 to 2023, alongside its associated economic and environmental impacts. Our results show that during 1997–2017, the main path of global industry relocation was that the US, EU and Japan relocated large-scale manufacturing and producer services to China. This relocation provided important economic growth opportunities for developing countries and narrowed the economic gap between them and developed economies, but it also resulted in certain carbon leakage. During 2017–2023, the global industry relocation pattern underwent significant changes, shifting from an efficiency-driven model to a security-prioritized model favoring re-shoring, near-shoring and friend-shoring. This round of industry relocation placed pressure on developed countries to reduce carbon emissions while hindering developing economies from achieving economic benefits and technological progress through global production networks.

Suggested Citation

  • Zhang, Yu & Tian, Kailan & Liu, Zhibiao, 2026. "Tracking global industry relocation and its economic and environmental impacts 1997–2023," Structural Change and Economic Dynamics, Elsevier, vol. 77(C), pages 258-273.
    • Handle: RePEc:eee:streco:v:77:y:2026:i:c:p:258-273
    DOI: 10.1016/j.strueco.2026.01.015
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