Offshore, re-shore, re-offshore: what happened to global manufacturing location between 2007 and 2014?

The gravity model

Xiang Gao, Geoffrey Hewings and Cuihong Yang

Cambridge Journal of Regions, Economy and Society, 2022, vol. 15, issue 2, 183-206

Abstract: The global manufacturing location is a dynamic result of competing relocation patterns (i.e., offshoring, re-shoring and re-offshoring). This paper proposes a systematic approach to simultaneously measuring the magnitude of those relocation patterns, overcoming the shortcomings of the existing measurements and establishing a data foundation for capturing the process-specific, industry-specific and country-specific features in different relocation patterns. The empirical evidence prior to 2014 confirms that: (i) re-shoring is more likely to be adopted in capital- or technology-intensive manufacturing; (ii) manufacturing production previously offshored to the high-income economies is much more locationally flexible and (iii) re-shoring, especially that in the labour-intensive industries, is more likely to happen with a higher degree of proximity between countries.

Keywords: production location re-configuration; offshoring; re-shoring; re-offshoring; industry relocation (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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