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Foreign direct investment in France goes to both the most robust and the most fragile companies
[Les investissements directs étrangers en France s’orientent à la fois vers les entreprises les plus robustes et les plus fragiles]

Author

Listed:
  • Julien URI

Abstract

Since 2015, foreign direct investment in France has been at a high, while companies that are on average larger and more efficient tend to be the target of foreign investors. In this context, the open debate around the concept of attractiveness generally swings between two seemingly contradictory reactions: the satisfaction of attracting foreign investors to finance the development of French companies and the fear of seeing those same investors lay their hands on France’s industrial and commercial treasures. Research on the subject has fuelled both hypotheses by showing that in general non-resident investors “cherry pick” – they buy the most efficient companies. Without settling the debate, this article uses a dispersion analysis to show that while non-resident investors may clearly favour high-potential companies, they also target companies in poor financial health. Depuis 2015, les investissements directs étrangers en France sont au plus haut. Les investisseurs étrangers ciblent des entreprises en moyenne plus grandes et plus efficaces que les autres. Dans ce contexte, le débat public autour de la notion d’attractivité oscille généralement entre deux idées apparemment contradictoires : la satisfaction d’attirer les investisseurs étrangers pour financer le développement des entreprises françaises, et la crainte de voir les mêmes investisseurs s’emparer des fleurons industriels et commerciaux de notre pays. Les recherches sur le sujet ont pu alimenter l’une comme l’autre thèse, en montrant qu’en moyenne les non-résidents achètent les entreprises les plus efficaces (phénomène de « cherry-picking »). Sans trancher ce débat, cet article met en évidence, via une analyse en dispersion, que les non-résidents privilégient certes les entreprises à fort potentiel, mais visent également des entreprises présentant une situation dégradée.

Suggested Citation

  • Julien URI, 2019. "Foreign direct investment in France goes to both the most robust and the most fragile companies [Les investissements directs étrangers en France s’orientent à la fois vers les entreprises les plus ," Bulletin de la Banque de France, Banque de France, issue 221.
  • Handle: RePEc:bfr:bullbf:2019:221:04
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    More about this item

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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