Global value chains in the post-pandemic world: How can the Western Balkans foster the potential of nearshoring?

This article from the Vienna Institute for International Economic Studies (wiiw) analyzes the impact of the global trade integration slow-down and of the COVID-19 pandemic that exacerbated internationally fragmented production processes. The 'new normal' will probably see a greater regionalisation of FDI (foreign direct investments) flows and may lead to some restructuring of existing value chains. This could present an opportunity for transition economies in the Western Balkans, with increased FDI flows from Western Europe, particularly in the areas of business services and logistics, which have gained momentum following the pandemic, given the competitive edge of the closer geographical locations compared to China or India.