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Why reshore? Evidence from Swedish firms

El-Sahli, Zouheir LU and Gullstrand, Joakim LU (2023) In Economics Letters 227.
Abstract
Reshoring, which refers to the relocation of previously offshored activities back to the home country, is a topic of growing interest in the literature. Two primary motivations for reshoring have been identified: the adoption of automation technology by firms and rising wages in offshoring destinations. In this study, we
propose a novel method for identifying and quantifying reshoring using micro-data from Sweden. We then apply this measure to examine the validity of the two reshoring motives. Our findings indicate that reshoring is positively associated with technological advancements within firms, while we find no evidence to support the notion that rising income in offshoring countries prompts reshoring.
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
offshoring, reshoring, heterogeneous firms, F14
in
Economics Letters
volume
227
article number
111116
publisher
Elsevier
external identifiers
  • scopus:85159058801
ISSN
0165-1765
DOI
10.1016/j.econlet.2023.111116
language
English
LU publication?
yes
id
159ceac9-939e-441a-9c44-29e20d6d02c7
date added to LUP
2023-04-13 14:57:34
date last changed
2023-10-26 15:02:00
@article{159ceac9-939e-441a-9c44-29e20d6d02c7,
  abstract     = {{Reshoring, which refers to the relocation of previously offshored activities back to the home country, is a topic of growing interest in the literature. Two primary motivations for reshoring have been identified: the adoption of automation technology by firms and rising wages in offshoring destinations. In this study, we<br/>propose a novel method for identifying and quantifying reshoring using micro-data from Sweden. We then apply this measure to examine the validity of the two reshoring motives. Our findings indicate that reshoring is positively associated with technological advancements within firms, while we find no evidence to support the notion that rising income in offshoring countries prompts reshoring.}},
  author       = {{El-Sahli, Zouheir and Gullstrand, Joakim}},
  issn         = {{0165-1765}},
  keywords     = {{offshoring; reshoring; heterogeneous firms; F14}},
  language     = {{eng}},
  month        = {{04}},
  publisher    = {{Elsevier}},
  series       = {{Economics Letters}},
  title        = {{Why reshore? Evidence from Swedish firms}},
  url          = {{http://dx.doi.org/10.1016/j.econlet.2023.111116}},
  doi          = {{10.1016/j.econlet.2023.111116}},
  volume       = {{227}},
  year         = {{2023}},
}