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

Author

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

Abstract

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.

Suggested Citation

  • Crozet, M. & Mayer, T. & Micchielli, J.L., 2000. "How Do Firms Agglomerate? A Study of FDI in France?," Papiers d'Economie Mathématique et Applications 2000.50, Université Panthéon-Sorbonne (Paris 1).
    • Handle: RePEc:fth:pariem:2000.50
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    More about this item

    Keywords

    INDUSTRIAL LOCATION ; REGIONAL ECONOMY;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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