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The Influences Affecting French Assets Abroad Prior To 1914

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  • Antoine Parent

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, MATISSE - UMR 8595 - Modélisation Appliquée, Trajectoires Institutionnelles et Stratégies Socio-Économiques - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP8 - Université Paris 8 Vincennes-Saint-Denis)

  • Christophe Rault

    (UEVE - Université d'Évry-Val-d'Essonne, EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this study we show that French foreign investment from the end of the nineteenth century until the eve of the First World War was driven by economic and financial considerations. This refutes the hitherto accepted thesis that French capital exports were motivated by diplomatic and political factors. By using economic modeling that combines microeconomic and econometric approaches, we show that the geographic distribution of French financial flows was consistent with rational economic behavior.

Suggested Citation

  • Antoine Parent & Christophe Rault, 2004. "The Influences Affecting French Assets Abroad Prior To 1914," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00278982, HAL.
    • Handle: RePEc:hal:cesptp:hal-00278982
    DOI: 10.1017/S0022050704002724
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    References listed on IDEAS

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    1. Jacqueline Pradel & Christophe Rault, 2003. "Exogeneity in Vector Error Correction Models with Purely Exogenous Long‐Run Paths," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(5), pages 629-653, December.
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    Cited by:

    1. Arouri, Mohamed & Teulon, Frédéric & Rault, Christophe, 2013. "Equity risk premium and regional integration," International Review of Financial Analysis, Elsevier, vol. 28(C), pages 79-85.
    2. Rui Esteves, 2011. "The Political Economy of Global Financial Liberalisation in Historical Perspective," Oxford Economic and Social History Working Papers _089, University of Oxford, Department of Economics.
    3. Maxime Merli & Antoine Parent & Cécile Edlinger, 2021. "Portfolio advice before modern portfolio theory: The Belle Epoque of French analyst Alfred Neymarck," Business History, Taylor & Francis Journals, vol. 63(7), pages 1197-1221, September.
    4. Stefano Bosi & Francesco Magris & Alain Venditti, 2007. "Sunspot Fluctuations in Two-sector Economies with Heterogeneous Agents," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(2), pages 311-331, November.
    5. Stefano Bosi & Eleni Iliopulos & Francesco Magris, 2006. "Skills, Immigration and Selective Policies," Documents de recherche 06-03, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    6. Arouri, Mohamed El Hedi & Ben Youssef, Adel & M'henni, Hatem & Rault, Christophe, 2012. "Energy consumption, economic growth and CO2 emissions in Middle East and North African countries," Energy Policy, Elsevier, vol. 45(C), pages 342-349.
    7. Nidhaleddine Ben Cheikh & Christophe Rault, 2017. "Investigating first-stage exchange rate pass-through: Sectoral and macro evidence from euro area countries," The World Economy, Wiley Blackwell, vol. 40(12), pages 2611-2638, December.
    8. Cécile EDLINGER & Maxime MERLI & Antoine PARENT, 2018. "Financial Diversification before WW1 : A Risk/Return Analysis of Portfolio’s Advice of French Financial Analyst Alfred Neymarck," Working Papers of LaRGE Research Center 2018-03, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    9. Stefano Bosi & Frédéric Dufourt & Francesco Magris, 2007. "Animal spirits in cash-in-advance economies," Recherches économiques de Louvain, De Boeck Université, vol. 73(2), pages 131-151.
    10. Hautcoeur Pierre-Cyrille & Riva Angelo E., 2013. "What Financiers Usually Do, and What We Can Learn from History," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 3(3), pages 313-331, April.
    11. Rudiger Ahrend & Carlos Winograd, 2006. "The political economy of mass privatisation and imperfect taxation: Winners and loosers," Public Choice, Springer, vol. 126(1), pages 201-224, January.
    12. Stefano Bosi, 2005. "Sunspot Bubbles," Documents de recherche 05-25, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    13. Jean-Pascal Bénassy & Michel Guillard, 2005. "The Taylor Principle and Global Determinacy in a Non-Ricardian World," Documents de recherche 05-26, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    14. Mohsen Bahmani-Oskooee & Thouraya Hadj Amor & Ridha Nouira & Christophe Rault, 2019. "Political Risk and Real Exchange Rate: What Can We Learn from Recent Developments in Panel Data Econometrics for Emerging and Developing Countries?," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 741-762, December.
    15. Guglielmo Maria Caporale & Thouraya Hadj Amor & Christophe Rault, 2011. "Sources of Real Exchange Rate Volatility and International Financial Integration: A Dynamic GMM Panel Approach," CESifo Working Paper Series 3645, CESifo.
    16. repec:spo:wpmain:info:hdl:2441/5uiggte9218fho46bb53jr7m8a is not listed on IDEAS
    17. Bosi, Stefano & Seegmuller, Thomas, 2006. "Optimal cycles and social inequality: What do we learn from the Gini index?," Research in Economics, Elsevier, vol. 60(1), pages 35-46, March.
    18. Esteves, Rui & Eichengreen, Barry, 2019. "The Trials of the Trilemma: International Finance 1870-2017," CEPR Discussion Papers 13465, C.E.P.R. Discussion Papers.
    19. Stefano Bosi & Carine Nourry, 2005. "Animal Spirits and Public Production in Slow Growth Economies," Documents de recherche 05-16, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    20. Hauner, Thomas & Milanovic, Branko & Naidu, Suresh, 2017. "Inequality, Foreign Investment, and Imperialism," MPRA Paper 83068, University Library of Munich, Germany.
    21. Bosi, Stefano & Dufourt, Frédéric, 2008. "Indeterminacy with constant money growth rules and income-based liquidity constraints," Research in Economics, Elsevier, vol. 62(2), pages 57-63, June.
    22. Francesco Magris & Giuseppe Russo, 2006. "Temporary Migrations and Restrictive Migratory Policies," Documents de recherche 06-05, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    23. Rui P. Esteves, 2011. "The Political Economy of Global Financial Liberalisation in Historical Perspective," Oxford University Economic and Social History Series _089, Economics Group, Nuffield College, University of Oxford.
    24. repec:hal:spmain:info:hdl:2441/5uiggte9218fho46bb53jr7m8a is not listed on IDEAS

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    French capital exports; Political factors;

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