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How do firms Agglomerate? A Study of FDI in France

Listed author(s):
  • Matthieu Crozet

    ()

    (TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Thierry Mayer

    ()

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Jean-Louis Mucchielli

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

This paper studies the determinants of location choice by foreign investors in France using a sample of almost 4000 foreign investments over 10 years and 92 locations. Concerning 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. Finally, we identify a 'learning process' of FDI, the location decisions becoming more remote from the country of origin during the period we study.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00268770.

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Length:
Date of creation: 2004
Publication status: Published in Regional Science and Urban Economics, Elsevier, 2004, 34 (1), pp.27-54. 〈10.1016/S0166-0462(03)00010-3〉
Handle: RePEc:hal:cesptp:hal-00268770
DOI: 10.1016/S0166-0462(03)00010-3
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00268770
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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