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How Do Firms Agglomerate? A Study of FDI in France?

  • Crozet, M.
  • Mayer, T.
  • Micchielli, J.L.

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.

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Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Papiers d'Economie Mathématique et Applications with number 2000.50.

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Length: 32 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:pariem:2000.50
Contact details of provider: Postal: France; Universite de Paris I - Pantheon- Sorbonne, 12 Place de Pantheon-75005 Paris, France
Phone: + 33 44 07 81 00
Fax: + 33 1 44 07 83 01
Web page: http://cermsem.univ-paris1.fr/

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  28. Head, Keith & Ries, John, 1996. "Inter-City Competition for Foreign Investment: Static and Dynamic Effects of China's Incentive Areas," Journal of Urban Economics, Elsevier, vol. 40(1), pages 38-60, July.
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