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Coming home and (not) moving in? Examining reshoring firms’ subnational location choices in the United States

Sharif Rasel, Ismail Abdulhak, Paul Kalfadellis and Mariano L. M. Heyden

Regional Studies, 2020, vol. 54, issue 5, 704-718

Abstract: The relation between firm characteristics (i.e., size) and domestic location choice (i.e., home state versus other) of reshoring firms, contingent on place (i.e., labour cost, innovation intensity, regulatory incentives) and space (i.e., agglomeration) features of regions is examined. The findings from US manufacturing firms’ reshoring activities from 2008 to 2017 suggest that larger firms are less likely to reshore to their home state. This tendency is strengthened when cost of production in a home state is higher, but offset when states provide higher incentives and have higher levels of agglomeration. Technological innovativeness in the home state did not influence this relation.

Date: 2020
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DOI: 10.1080/00343404.2019.1669784

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Handle: RePEc:taf:regstd:v:54:y:2020:i:5:p:704-718