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Is the U.S. Friend-Shoring, Nearshoring, or Reshoring ? Evidence from Greenfield Investment Announcements

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  • Alen Mulabdic
  • Gaurav Nayyar

Abstract

This paper examines the evolution of greenfield investment announcements—both domestic and international—for US multinational companies in response to recent global shocks. The results indicate an intensification of reshoring and nearshoring activities by US companies, especially following the Russian Federation’s invasion of Ukraine. This shift is estimated to have doubled the number of direct jobs associated with greenfield investment announcements in the US and its neighboring countries. The paper finds no evidence that US companies are adopting a friend-shoring strategy by investing more in military allies. The paper suggests that US supply chains are likely to become less global and more regional as these investments become operational.

Suggested Citation

  • Alen Mulabdic & Gaurav Nayyar, 2024. "Is the U.S. Friend-Shoring, Nearshoring, or Reshoring ? Evidence from Greenfield Investment Announcements," Policy Research Working Paper Series 11006, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11006
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    References listed on IDEAS

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