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 ‘learning process’ 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 InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3873.
Date of creation: Apr 2003
Date of revision:
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Other versions of this item:
- Crozet, Matthieu & Mayer, Thierry & Mucchielli, Jean-Louis, 2004. "How do firms agglomerate? A study of FDI in France," Regional Science and Urban Economics, Elsevier, vol. 34(1), pages 27-54, January.
- 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 & Jean-Louis Mucchielli & Thierry Mayer, 2004. "How do firms agglomerate? A study of FDI in france," Sciences Po publications info:hdl:2441/c8dmi8nm4pd, Sciences Po.
- 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
This paper has been announced in the following NEP Reports:
- NEP-DCM-2003-07-13 (Discrete Choice Models)
- NEP-GEO-2003-07-13 (Economic Geography)
- NEP-URE-2003-07-13 (Urban & Real Estate Economics)
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