Backshoring of Production Activities in European Manufacturing

Bernhard Dachs and Christoph Zanker

MPRA Paper from University Library of Munich, Germany

Abstract: This note presents empirical evidence on production backshoring – the movement of production activities from locations abroad back to the home country. Between 2010 and Mid-2012, only four percent of all firms moved production activities back to their home country. For every backshoring firm, there are more than three offshoring firms. Thus, from today’s perspective it is unlikely that backshoring will be an important driver of a ‘manufacturing renaissance’ in Europe. The most frequent reason for backshoring is poor quality of the goods produced at foreign locations, followed by the loss of flexibility and too high transport costs. Sectors with a high backshoring propensity are electrical equipment, communications equipment and the automotive industry. These sectors are the most obvious candidates for policy intervention to increase the frequency of backshoring in European manufacturing.

Keywords: Backshoring; offshoring; manufacturing; relocation (search for similar items in EconPapers)
JEL-codes: F23 F6 L6 (search for similar items in EconPapers)
Date: 2015-04-20
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/63868/1/MPRA_paper_63867.pdf original version (application/pdf)

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:pra:mprapa:63868

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().