Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/310347 
Year of Publication: 
2024
Series/Report no.: 
NBB Working Paper No. 465
Publisher: 
National Bank of Belgium, Brussels
Abstract: 
This paper documents a trend towards deglobalization in European-based multinational networks for the period 2010-2019. In the second half of the decade, the number of foreign contraction episodes shows an increasing trend, while the number of foreign expansions decreased substantially. Foreign expansions also increasingly resulted in a reduced geographic scope of networks (nearshoring) and a higher concentration of activity in geopolitically aligned host countries (friendshoring). We estimate home-country effects of foreign network restructuring by analyzing the number of domestic affiliates and different outcomes for parents and domestic affiliates. We find no evidence of increased home country activity in the wake of foreign contraction episodes, but foreign expansion yields benefits for the domestic economy both along the domestic extensive and intensive margins. A reduced geographic scope and geopolitical reorientation do not induce systematic differences in the home-country effects neither for expansion nor for contraction episodes.
Subjects: 
International Organization of Production
Multinational Networks
Restructuring
Home Country Effects
Deglobalization
JEL: 
F14
F23
F44
Document Type: 
Working Paper

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