Reshoring and firm productivity

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.