Nearshoring and farsharing in Europe within the global economy: regional trends, structural components and sectoral patterns

Filippo Bontadini, Valentina Meliciani, Maria Savona and Ariel Luis Wirkierman ()
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Filippo Bontadini: LUISS, Libera Università Internazionale degli Studi Sociali Guido Carli
Valentina Meliciani: LUISS, Libera Università Internazionale degli Studi Sociali Guido Carli
Maria Savona: LUISS, Libera Università Internazionale degli Studi Sociali Guido Carli
Ariel Luis Wirkierman: Dipartimento di Giurisprudenza, Università degli Studi di Macerata

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2025, vol. 52, issue 3, No 3, 559-597

Abstract: Abstract This paper documents recent trends in the geographical distribution of value added across Global Value Chains (GVCs). By combining the industry (i.e., source) and value chain (i.e., destination) analytical perspectives, we find two concurrent processes setting Europe’s participation to GVCs apart from other two macro-regions, Asia-Pacific and the Americas. European value chains have recently increased the share of value added they import from within Europe—which amounts to nearshoring—while European country-industries have, from a long-period perspective, increased the share of value added they provide to extra-European value chains—which we refer to as farsharing. We study these trends by decomposing macro-regional dynamics into structural components, zooming in on Europe to highlight country- and sector-level patterns. Crucially, if global final demand decelerates, the positive intra-European spillovers due to regional backward linkages (nearshoring-induced effects) might not become as effective as they could potentially be, given that activating European production increasingly requires extra-European final demand (the farsharing constraint).

Keywords: Global Value Chains; Input-output analysis; International Production Fragmentation; Nearshoring (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40812-025-00361-4

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