How do Firms Agglomerate? A Study of FDI in France

Matthieu Crozet, Thierry Mayer and Jean-Louis Mucchielli

Cahiers de la Maison des Sciences Economiques 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. Finally, we identify for some European countries a "learning process" of foreign direct investment, the location decisions gradually becoming more remote from the country of origin during the period we study

Keywords: Industrial location; conditional logit; FDI; regional policy (search for similar items in EconPapers)
JEL-codes: F23 R3 R58 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2000-04
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Published in Regional Science and Urban Economics, 34, (1), 2004, pp. 27-54

Downloads: (external link)
https://shs.hal.science/halshs-03718427 (application/pdf)
https://doi.org/10.1016/S0166-0462(03)00010-3

Related works:
Journal Article: How do firms agglomerate? A study of FDI in France (2004)
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)
Working Paper: How do Firms Agglomerate? A Study of FDI in France (2003)
Working Paper: How Do Firms Agglomerate? A Study of FDI in France? (2000)
Working Paper: How do Firms Agglomerate? A Study of FDI in France (2000)
Working Paper: How do Firms Agglomerate? A Study of FDI in France (2000)
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