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Reorganizing global supply-chains: Who, What, How and Where

G. Barate, Lionel Fontagné and R. Laforgne-Joussier
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G. Barate: Ecole nationale des ponts et chaussées
R. Laforgne-Joussier: INSEE, CREST, Ecole Polytechnique

Documents de Travail de l'Insee - INSEE Working Papers from Institut National de la Statistique et des Etudes Economiques

Abstract: In an increasingly uncertain environment, firms are differently exposed to shocks and may or may not bear the cost of reorganizing their value chain by reshoring or offshoring. This paper draws on a survey of French firms about the decision to reorganize part of their value chain between January 2018 and December 2020. Reorganizations prove to be infrequent, made by firms employing a higher proportion of skilled workers, in manufacturing rather than in services, with a predominance of multinational firms. Even though high-skill firms are reorganizing more, reorganized business functions are less skill-intensive, but more intensive in routine tasks. Activities more intensive in intangible capital are more likely to be reorganized within firm’s boundaries. Last, besides reshoring in France, activities are located close to France when offshored. India, combining low-average wage and a large endowment of high-skilled workers, receives a disproportionate share of skill intensive activities.

Keywords: Supply-chains; Reshoring; Offshoring (search for similar items in EconPapers)
JEL-codes: F14 F23 L10 L23 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-int
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https://www.insee.fr/fr/statistiques/8286407 Document de travail de la DESE numero 2024-24 (application/pdf)

Related works:
Working Paper: Reorganizing Global Supply-chains: Who, What, How, and Where (2024) Downloads
Working Paper: Reorganizing global supply-chains: Who, What, How, and Where (2024) Downloads
Working Paper: Reorganizing global supply-chains: Who, What, How, and Where (2024) Downloads
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