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Reshoring, nearshoring and developing countries

Author

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  • Pietrobelli, Carlo
  • Seri, Cecilia

    (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn)

Abstract

This paper discusses the concepts of reshoring and nearshoring that are gaining increasing popularity. We contribute to the literature in three main ways. First, building on previous theories we define a theoretical framework and consider how recent developments – COVID-19 and Industry 4.0 technologies – may impact on these patterns. Secondly, we process some preliminary evidence to test whether Latin American and Caribbean economies are indeed participating in this reshoring trend. Thirdly, we propose a measure of “Reshoring Readiness”, to assess whether Latin American countries appear to be ready to host relocations and benefit from them. Overall, we find limited evidence of nearshoring to the region so far, except for Mexico, and we highlight strengths and weaknesses of the region for attracting and benefitting from future relocations.

Suggested Citation

  • Pietrobelli, Carlo & Seri, Cecilia, 2023. "Reshoring, nearshoring and developing countries," MERIT Working Papers 2023-003, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2023003
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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