The effect of nearshoring on industrialization in the context of Global Value Chains

Omar Neme Castillo ()
Additional contact information
Omar Neme Castillo: "Instituto Politécnico Nacional, Escuela Superior de Economía, Mexico " Author-2-Name: Cesaire Chiatchoua Author-2-Workplace-Name: "Instituto Politécnico Nacional, Escuela Superior de Economía, Mexico " Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:

GATR Journals from Global Academy of Training and Research (GATR) Enterprise

Abstract: " Objective - Nearshoring processes are identified as central to (re)industrialization, which, however, depends on the position within Global Value Chains (GVCs) and the structural characteristics of the economies. The objective of this paper is to estimate the effect of nearshoring on industrialization for a group of 75 countries over the period 2010-2021, differentiated by their integration into GVCs. Methodology/Technique - It is hypothesized that countries with a greater weight in GVCs benefit most from industrial relocation. The econometric methodology employs dynamic panel data, accounting for potential simultaneity and endogeneity between variables (S-GMM). Findings - The analysis incorporates economic and technological variables. A nearshoring index is proposed and discussed based on central elements of globalization, such as foreign and domestic value added, foreign direct investment flows, and pressures on supply chains. The findings corroborate the hypothesis of nearshoring by reindustrialization. Therefore, industrial policy in the context of globalization must consider the absorption and integration capacities in global value chains to support industrial development. Novelty - The paper contributes to the debate on whether nearshoring is generating a significant boost to global industrialization. Type of Paper - Empirical"

Keywords: Nearshoring; nearshoring index; industrialization; global value chains; S-GMM. (search for similar items in EconPapers)
JEL-codes: F10 F60 L00 O14 (search for similar items in EconPapers)
Pages: 8
Date: 2025-09-30
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Journal of Management and Marketing Review, Volume 10, Issue3

Downloads: (external link)
http://gatrenterprise.com/GATRJournals/JMMR/pdf_fi ... 0Neme%20Castillo.pdf (application/pdf)
http://gatrenterprise.com/GATRJournals/online_submission.html

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:gtr:gatrjs:jmmr351

DOI: 10.35609/jmmr.2025.10.3(3)

Access Statistics for this paper

More papers in GATR Journals from Global Academy of Training and Research (GATR) Enterprise
Bibliographic data for series maintained by Prof. Dr. Abd Rahim Mohamad ().