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French net direct investment flows were back in surplus in 2016

Author

Listed:
  • Andréa Parasmo
  • Jean-Luc Cayssials

Abstract

The improvement in the global economic environment continues to support direct investment transactions in France. In 2016, French net direct investment transactions reported a surplus of EUR 26 billion, after the slightly negative balance reported in 2015. The value of investments abroad made by French residents was more than double the value of non-resident investments in France. French direct investments abroad amounted to EUR 52 billion in 2016, more than three times the EUR 15 billion low recorded in 2013. France resumed its investments in non-resident manufacturing. Investments continued to be concentrated in the euro area and the United States, but gained ground in the new economic growth areas represented by emerging markets. For the first time since 2008, French residents disinvested in the United Kingdom. French companies continued to attract non-resident investors (around EUR 26 billion in direct inward investments), who diversified their transactions by participating in fund-raising for new technology firms. Finland and Luxembourg were the two main investor countries in France, while China and Hong Kong, and the countries of the Near and Middle East took on an increasingly influential role. By contrast, for the second year running, the United States disinvested in France.

Suggested Citation

  • Andréa Parasmo & Jean-Luc Cayssials, 2017. "French net direct investment flows were back in surplus in 2016," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 48, pages 35-44, Winter.
  • Handle: RePEc:bfr:quarte:2017:48:03
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    direct investments; international investment; position; new economy; investor; country; destination country; ultimate investor;
    All these keywords.

    JEL classification:

    • 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
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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