A taxonomy of back-shoring initiatives in the US

The study develops an empirical taxonomy of manufacturing back-shoring initiatives to the US, based on the drivers the location decision. Results identify six patterns of back-shoring, which highlight the importance of concurrently considering different theoretical lenses to interpret the phenomenon. Back-shoring initiatives are significantly driven by non-price related costs, which include the costs of governance. Institutional pressures coming from customers demanding country-of-origin branding and from political bodies are also important drivers, while the exploitation of distinctive resources that allow firms to compete in high-segment markets is less relevant. The study also highlights that back-shoring patterns are significantly related to within-border location advantages, such as state-level median wages, productivity, and innovation capacity.

Automated summary

This study develops an empirical taxonomy of manufacturing back-shoring initiatives to the US based on the drivers of location decisions. The results identify six patterns of back-shoring and emphasize the importance of considering different theoretical lenses to interpret this phenomenon. The study shows that back-shoring initiatives are significantly driven by non-price related costs, institutional pressures, and within-border location advantages. The study also highlights the less relevance of exploiting distinctive resources for firms to compete in high-segment markets.