How do firms agglomerate? A study of FDI in France

Matthieu Daniel CROZET, Thierry MAYER, Jean-Louis MUCCHIELLI

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

187 Citations (Scopus)

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.
Original languageEnglish
Pages (from-to)27-54
Number of pages28
JournalRegional Science and Urban Economics
Volume34
Issue number1
DOIs
Publication statusPublished - 1 Jan 2004
Externally publishedYes

Fingerprint

location decision
regional policy
country of origin
agglomeration
learning
France
choice of location
firm
industry
foreign investment
investor
evidence
learning process
agglomeration area
determinants
effect
Country of origin
Agglomeration
Clustering
Foreign investors

Keywords

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

Cite this

CROZET, Matthieu Daniel ; MAYER, Thierry ; MUCCHIELLI, Jean-Louis. / How do firms agglomerate? A study of FDI in France. In: Regional Science and Urban Economics. 2004 ; Vol. 34, No. 1. pp. 27-54.
@article{b42e5ce4c99645e18fa9b79d21254262,
title = "How do firms agglomerate? A study of FDI in France",
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.",
keywords = "Conditional logit, FDI, Industrial location, Nested logit, Regional policy",
author = "CROZET, {Matthieu Daniel} and Thierry MAYER and Jean-Louis MUCCHIELLI",
year = "2004",
month = "1",
day = "1",
doi = "10.1016/S0166-0462(03)00010-3",
language = "English",
volume = "34",
pages = "27--54",
journal = "Regional Science and Urban Economics",
issn = "0166-0462",
publisher = "Elsevier",
number = "1",

}

How do firms agglomerate? A study of FDI in France. / CROZET, Matthieu Daniel; MAYER, Thierry; MUCCHIELLI, Jean-Louis.

In: Regional Science and Urban Economics, Vol. 34, No. 1, 01.01.2004, p. 27-54.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

TY - JOUR

T1 - How do firms agglomerate? A study of FDI in France

AU - CROZET, Matthieu Daniel

AU - MAYER, Thierry

AU - MUCCHIELLI, Jean-Louis

PY - 2004/1/1

Y1 - 2004/1/1

N2 - 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.

AB - 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.

KW - Conditional logit

KW - FDI

KW - Industrial location

KW - Nested logit

KW - Regional policy

UR - http://commons.ln.edu.hk/sw_master/5988

U2 - 10.1016/S0166-0462(03)00010-3

DO - 10.1016/S0166-0462(03)00010-3

M3 - Journal Article (refereed)

VL - 34

SP - 27

EP - 54

JO - Regional Science and Urban Economics

JF - Regional Science and Urban Economics

SN - 0166-0462

IS - 1

ER -