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Reorganizing global supply-chains: Who, What, How and Where

Author

Listed:
  • G. BARATE

    (Ecole nationale des ponts et chaussées)

  • L. FONTAGNE

    (Banque de France, CEPII, PSE)

  • R. LAFROGNE-JOUSSIER

    (INSEE, CREST, Ecole Polytechnique)

Abstract

In an increasingly uncertain environment, firms are differently exposed to shocks and may or may not bear the cost of reorganizing their value chain by reshoring or offshoring. This paper draws on a survey of French firms about the decision to reorganize part of their value chain between January 2018 and December 2020. Reorganizations prove to be infrequent, made by firms employing a higher proportion of skilled workers, in manufacturing rather than in services, with a predominance of multinational firms. Even though high-skill firms are reorganizing more, reorganized business functions are less skill-intensive, but more intensive in routine tasks. Activities more intensive in intangible capital are more likely to be reorganized within firm’s boundaries. Last, besides reshoring in France, activities are located close to France when offshored. India, combining low-average wage and a large endowment of high-skilled workers, receives a disproportionate share of skill intensive activities.

Suggested Citation

  • G. Barate & L. Fontagne & R. Lafrogne-Joussier, 2024. "Reorganizing global supply-chains: Who, What, How and Where," Documents de Travail de l'Insee - INSEE Working Papers 2024-24, Institut National de la Statistique et des Etudes Economiques.
    • Handle: RePEc:nse:doctra:2024-24
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    File URL: https://www.insee.fr/fr/statistiques/8286407
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    More about this item

    Keywords

    Supply-chains; Reshoring; Offshoring;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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