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How Do Firms Agglomerate? A Study of FDI in France?

Matthieu Crozet (), Thierry Mayer () and J.L. Micchielli

Papiers d'Economie Mathématique et Applications from Université Panthéon-Sorbonne (Paris 1)

Abstract: This paper studies the determinants of location choice by foreign investors in France. A new sample of almost 4000 location choices over 10 years and 92 administrative locations is used to measure two important issues : To what extent do foreign investors cluster spatially and are the decision makers sensitive to investment incentives ? Concerning the agglomeration effects, we find very strong evidence of positive spillovers between firms and identify the countries of origin and the industries for which those spillovers are the most substantial. Concerning promotion policies, we find very little evidence of any positive impact of either the national or European regional policy on location choices.

Keywords: INDUSTRIAL LOCATION; REGIONAL ECONOMY (search for similar items in EconPapers)
JEL-codes: F23 R30 R58 (search for similar items in EconPapers)
Date: 2000
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Related works:
Journal Article: How do firms agglomerate? A study of FDI in France (2004) Downloads
Working Paper: How do firms Agglomerate? A Study of FDI in France (2004)
Working Paper: How do firms agglomerate? A study of FDI in france (2004) Downloads
Working Paper: How do firms agglomerate? A study of FDI in france (2004) Downloads
Working Paper: How do Firms Agglomerate? A Study of FDI in France (2003) Downloads
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