IDEAS home Printed from https://ideas.repec.org/a/eee/ecolet/v230y2023ics0165176523002641.html
   My bibliography  Save this article

How nearshoring reshapes global deindustrialization

Author

Listed:
  • Lábaj, Martin
  • Majzlíková, Erika

Abstract

Although recent decades were marked by within-country deindustrialization, this was not observed on the global level, as jobs moved from smaller, highly productive countries to large, less productive ones. We provide new empirical evidence that this trend reversed in the mid-2010s. We compiled annual employment data for 64 industries in 45 economies for 2010–2020 that are compatible with the multi-regional input–output tables provided by Eurostat in the FIGARO 2022 database. The data show that global employment generated by vertically integrated manufacturing activities has started to decline. The regionalization of global value chains was identified as the main driver that has reversed this trend, as the level of offshoring from most regions has declined.

Suggested Citation

  • Lábaj, Martin & Majzlíková, Erika, 2023. "How nearshoring reshapes global deindustrialization," Economics Letters, Elsevier, vol. 230(C).
    • Handle: RePEc:eee:ecolet:v:230:y:2023:i:c:s0165176523002641
    DOI: 10.1016/j.econlet.2023.111239
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165176523002641
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econlet.2023.111239?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Claudio Di Berardino & Ilaria Doganieri & Gianni Onesti, 2021. "Deindustrialization in the EU between Transformation and Decline," Eastern European Economics, Taylor & Francis Journals, vol. 59(3), pages 225-249, May.
    2. Daria Ciriaci & Daniela Palma, 2016. "Structural change and blurred sectoral boundaries: assessing the extent to which knowledge-intensive business services satisfy manufacturing final demand in Western countries," Economic Systems Research, Taylor & Francis Journals, vol. 28(1), pages 55-77, March.
    3. Felipe, Jesus & Mehta, Aashish, 2016. "Deindustrialization? A global perspective," Economics Letters, Elsevier, vol. 149(C), pages 148-151.
    4. Broz, J. Lawrence & Frieden, Jeffry & Weymouth, Stephen, 2021. "Populism in Place: The Economic Geography of the Globalization Backlash," International Organization, Cambridge University Press, vol. 75(2), pages 464-494, February.
    5. Martin Lábaj & Erika Majzlíková, 2022. "Drivers of deindustrialisation in internationally fragmented production structures," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 46(1), pages 167-194.
    6. Fiona Tregenna, 2014. "A new theoretical analysis of deindustrialisation," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(6), pages 1373-1390.
    7. Claudio Di Berardino & Gianni Onesti, 2021. "Explaining deindustrialisation from a vertical perspective: industrial linkages, producer services, and international trade," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(7), pages 685-706, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Claudio Di Berardino & Ilaria Doganieri & Stefano D'Angelo & Gianni Onesti, 2023. "Intersectoral and intercountry linkages as drivers of employment growth in emerging economies: The case of Visegrád countries," Metroeconomica, Wiley Blackwell, vol. 74(1), pages 163-187, February.
    2. Herrero, Daniel & Rial, Adrián, 2023. "Labor costs, KIBS, and export performance: A comparative analysis of Germany and Mediterranean economies," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 184-198.
    3. Antonioli, Davide & Berardino, Claudio Di & Onesti, Gianni, 2023. "The intersectoral linkages and manufacturing productivity growth in Italian regions using the I-O approach," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 120-133.
    4. Araujo, Ricardo Azevedo & Santini, Theo & de Acypreste, Rafael, 2023. "A vertically integrated approach to increasing returns and cumulative causation," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 49-58.
    5. Maurice Obstfeld, 2021. "Globalization and nationalism: Retrospect and prospect," Contemporary Economic Policy, Western Economic Association International, vol. 39(4), pages 675-690, October.
    6. Andrés Rodríguez-Pose & Neil Lee & Cornelius Lipp, 2021. "Golfing with Trump. Social capital, decline, inequality, and the rise of populism in the US," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 14(3), pages 457-481.
    7. Ajit K. Ghose, 2021. "Structural Change and Development in India," Indian Journal of Human Development, , vol. 15(1), pages 7-29, April.
    8. Wilson Quijano & Diego Alejandro Guevara-Castañeda, 2021. "Desindustrialización: evidencias desde una mirada kaldoriana para Colombia (2005-2017)," Ensayos de Economía 19342, Universidad Nacional de Colombia Sede Medellín.
    9. Seungil Yum, 2019. "The interaction between knowledge-intensive business services and urban economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 53-83, August.
    10. Andre Lorentz & Tommaso Ciarli & Maria Savona & Marco Valente, 2019. "Structural Transformations and Cumulative Causation: Towards an Evolutionary Micro-foundation of the Kaldorian Growth Model," Working Papers of BETA 2019-15, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    11. Valeriy V. Mironov & Liudmila D. Konovalova, 2019. "Structural changes and economic growth in the world economy and Russia," Russian Journal of Economics, ARPHA Platform, vol. 5(1), pages 1-26, April.
    12. Chen, Liming & Felipe, Jesus & Kam, Andrew J.Y. & Mehta, Aashish, 2021. "Is employment globalizing?," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 74-92.
    13. Fabrizio Ferretti & Michele Mariani & Elena Sarti, 2022. "Patterns of Deindustrialization: Are Countries Converging?," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 14(10), pages 1-78, October.
    14. Kym Anderson & Sundar Ponnusamy, 2019. "Structural Transformation to Manufacturing and Services: What Role for Trade?," Asian Development Review, MIT Press, vol. 36(2), pages 32-71, September.
    15. Maria Savona, 2021. "Revisiting High Development Theory to Explain Upgrading Prospects in Business Services Global Value Chains," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 206-226, April.
    16. Mark Setterfield & Selen Ozcelik, 2017. "Is the balance of payments constrained growth rate time-varying? Exchange rate over valuation, policy-induced recessions, deindustrialization, and long run growth," Working Papers 1726, New School for Social Research, Department of Economics.
    17. John Ssozi & Edward Bbaale, 2019. "The Effects of the Catch-Up Mechanism on the Structural Transformation of Sub-Saharan Africa," Economies, MDPI, vol. 7(4), pages 1-27, November.
    18. Carnegie, Allison & Clark, Richard & Zucker, Noah, 2024. "Global Governance under Populism: The Challenge of Information Suppression," Institute on Global Conflict and Cooperation, Working Paper Series qt2572w5s7, Institute on Global Conflict and Cooperation, University of California.
    19. Christoph Morosoli & Peter Draper & Andreas Freytag & Sebastian Schuhmann, 2024. "Drivers of Inclusive Development: An Empirical Investigation," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(4), pages 987-1015, August.
    20. Martin Labaj & Stracova Erika, 2019. "Drivers of Deindustrialisation: Sub-system Analysis of Internationally Fragmented Production Structures," Department of Economic Policy Working Paper Series 018, Department of Economic Policy, Faculty of National Economy, University of Economics in Bratislava.

    More about this item

    Keywords

    Input–output analysis; Deindustrialization; Manufacturing; Nearshoring;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:230:y:2023:i:c:s0165176523002641. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.