Made in France and Reshoring in Multi-Regional Input-Output Tables

Made in France, defined as domestic value added content of the final domestic demand, fell by 11 points between 1965 and 2019, from 89% to 78%. This downward trend is common to European countries and reflects the growing globalization process of recent decades. The location of a production plant in France has consequences throughout the value chain. These spillovers increase the positive effects of setting up a new plant on economic activity and employment in France, compared to the creation of a similar plant abroad. The spillover effect, defined as the total value added of the new plant and its suppliers compared to the value added of the new plant alone, and simulated here under the strong assumption that the supply chain of the new plant is similar to those of existing firms, would be around 2.0 in manufacturing industry and 1.6 in market services. If greenhouse gas emissions from production increase in France, they decrease worldwide, since production in France is less carbon-intensive than in the countries that supply imports.