Title

How do firms agglomerate? A study of FDI in France

Document Type

Journal article

Source Publication

Regional Science and Urban Economics

Publication Date

1-2004

Volume

34

Issue

1

First Page

27

Last Page

54

Publisher

Elsevier BV

Keywords

Industrial location, Conditional logit, Nested logit, FDI, Regional policy

Abstract

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.

DOI

10.1016/S0166-0462(03)00010-3

Print ISSN

01660462

Funding Information

This research benefited from the financial assistance of L’Istituto Affari Internazionali (Rome) and the Commissariat Général du Plan (Paris, convention 4-98).

Publisher Statement

Copyright © 2003 Elsevier B.V. All rights reserved.

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Recommended Citation

Crozet, M., Mayer, T., & Mucchielli, J.-L. (2004). How do firms agglomerate? A study of FDI in France. Regional Science and Urban Economics, 34(1), 27-54. doi: 10.1016/S0166-0462(03)00010-3