Reshoring and firm productivity

Abstract

This paper investigates the impact of reshoring, defined as the relocation of previously offshored production activities back to the home country or to a neighbouring country, on the productivity of manufacturing firms. It uses data from the European Reshoring Monitor on European firms in the period 2014–18. Reshoring increased total factor productivity of small and medium-sized firms, but did not affect productivity of large firms. The positive effect was stronger for firms that had offshored production to some Asian countries.