Reshoring, Nearshoring and Development. Readiness and Implications for Latin America and the Caribbean

This article discusses the concepts of offshoring and proximate offshoring, which are gaining increasing popularity. It contributes to the literature in three main ways. First, it builds on previous theories, defining a conceptual framework and considering how recent developments-the COVID-19 pandemic and Industry 4.0 technologies-may affect these patterns. Second, it processes some preliminary data to test whether Latin American and Caribbean economies are actually participating in this offshoring trend. Third, it proposes a measure of “reshoring readiness” to assess whether these countries appear to be prepared to welcome and benefit from offshoring. Overall, it found limited evidence of nearshoring to the region so far, except in Mexico, and highlights the region's strengths and weaknesses in attracting and benefiting from future offshoring.