Where do foreign firms locate in France and why?

Thierry Mayer

No 7/2004, EIB Papers from European Investment Bank, Economics Department

Abstract: This paper studies the determinants of individual location choices of manufacturing production units by foreign affiliates. It concentrates on the specific case of FDI location in France over the period from 1985 to 1995 and evaluates, in particular, how regional policies in favour of French regions by both national and EU authorities compare to other determinants of the location choice. It is shown that foreign investors are, to a large extent, not sensitive to public investment incentives, and are primarily driven by conventional forces such as the market potential, labour costs and agglomeration effects in the region considered for investment. Proximity to the home country of the investor also has a robust positive effect on location choice.

Keywords: Foreign direct investment; industrial location; regional policy (search for similar items in EconPapers)
JEL-codes: F23 R30 R58 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2004-06-18
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.eib.org/attachments/efs/eibpapers/eibpa ... 9_n02_en.pdf#page=40 Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:eibpap:2004_007

Access Statistics for this paper

More papers in EIB Papers from European Investment Bank, Economics Department Contact information at EDIRC.
Bibliographic data for series maintained by Polyxeni Kanelliadou ().