Globalisation, delocalisation and development: Conceptual framework and impacts on Southern European countries

Abstract

The main aim of this chapter is a critical discussion of the concept of relocation considering the closely related issues of delocalisation and relocalisation in Southern Europe. We argue that the most relevant issue when it comes to changes in the location of business is not so much why, how and when firms decide to relocate (which is obviously an essential part of the discussion and is covered by a vast array of approaches and theories on Foreign Direct Investment [FDI], outsourcing etc.), but rather the factors shaping the differential impacts of such movements in the wider production systems and economies of cities, localities, regions and countries. For a number of reasons, Southern European territories are particularly vulnerable to such pressures. The second part of this chapter tests some metrics suggested for the measurement of delocalisation, in a first discussion about the pressures and responses of Southern European production systems.