How regional is the manufacturing value chain of the main European countries?

This study investigates the recent dynamics of deindustrialization and the shift toward regionalization in the manufacturing value chains within four major European economies: Germany, Spain, France, and Italy, during the decade 2010–2020. We provide new empirical evidence highlighting a nuanced picture of the manufacturing evolution, characterized by a slight decline in employment shares and an increase in value-added shares, suggesting a shift toward higher efficiency and a degree of reshoring of activities. The total amount of activity generated domestically increased slightly, suggesting reshoring over the last decade. The analysis underscores the growing importance of services offshoring over manufacturing, highlighting a strategic shift toward leveraging regional strengths and integration. The study contributes to the understanding of the evolving landscape of global value chains, regionalization, and the strategic responses of major European economies in the face of global shifts toward nearshoring and reshoring.