How do firms agglomerate? A study of FDI in France
AbstractThis Paper studies the determinants of location choice by foreign investors in France. A new sample of almost 4000 location choices over ten 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 provided through regional policies? Concerning the agglomeration effects, we find very strong evidence of positive spillovers between firms and identify detailed patterns of clustering assessing for instance the countries of origin and the industries for which those spillovers are the most substantial. Concerning regional 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 âlearning processâ of foreign direct investment, the location decisions gradually becoming more remote from the country of origin during the period we study.
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Bibliographic InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 34 (2004)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/regec
Other versions of this item:
- Crozet, M. & Mayer, T. & Micchielli, J.L., 2000. "How Do Firms Agglomerate? A Study of FDI in France?," Papiers d'Economie MathÃÂ©matique et Applications 2000.50, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Matthieu Crozet & Thierry Mayer & Jean-Louis Mucchielli, 2004. "How do firms agglomerate? A study of FDI in france," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
- Crozet, Matthieu & Mayer, Thierry & Mucchielli, Jean-Louis, 2003. "How do Firms Agglomerate? A Study of FDI in France," CEPR Discussion Papers 3873, C.E.P.R. Discussion Papers.
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
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