‘Home-sourcing’ and closer value chains in mature economies: the case of Spanish manufacturing

David Bailey, Carlo Corradini and Lisa De Propris

Cambridge Journal of Economics, 2018, vol. 42, issue 6, 1567-1584

Abstract: This paper offers a novel perspective on manufacturing home-sourcing. We present evidence that home-sourcing occurs in the context of a new competitive environment where the relative importance of scale economies versus variety is altered, and a recoupling of innovation and production within industrial ecosystems becomes desirable. We look at the determinants of manufacturing home-sourcing. We find that R&D-intensive businesses with core non-standardized products are more likely to switch sourcing of components to the home economy from abroad. Our findings provide evidence in favour of increasing trends towards closer value chains for knowledge-intensive production, suggesting that the possibilities for (and potential impact of) home-sourcing have not been fully recognised as pathways to industrial and economic renewal in mature economies. The implications for industrial policy are to focus on the resilience of existing national industrial ecosystems and their attractiveness and ability to integrate incoming business opportunities.

Keywords: Manufacturing; Home-sourcing; Global value chains; Innovation; Reshoring; Industrial policy (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://hdl.handle.net/10.1093/cje/bey020 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:cambje:v:42:y:2018:i:6:p:1567-1584.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Cambridge Journal of Economics is currently edited by Jacqui Lagrue

More articles in Cambridge Journal of Economics from Cambridge Political Economy Society Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().