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FDI location choices: Evidence from French first-time movers

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Abstract

This paper studies location choice determinants of French first-time investors in Europe, North Africa and North America. The sample includes 356 location choices of French firms in 27 countries in 2004. Market demand and cultural proximity to France have a strong influence on national and regional location strategies. The tendency of investing firms to cluster in specific locations in the host country is confirmed. In particular, the high correlation between the location choice of French first-time investors and existing French foreign establishments reflects francophone affinity. Nevertheless, French investors are often equally attracted to cluster from other nations.

Zusammenfassung

Dieser Aufsatz untersucht die Standortdeterminanten von französischen Erstinvestoren in Europa, Nord Afrika und Nord Amerika. Der Datensatz beinhaltet 356 Standortentscheidungen von französischen Firmen in 27 Ländern in 2004. Marktnachfrage und kulturelle Nähe zu Frankreich haben einen großen Einfluss auf die Standortstrategie. Auslandstöchter werden vornehmlich in bestimmten Ballungszentren angesiedelt. Insbesondere die hohe Korrelation zwischen den von französischen Erstinvestoren gewählten Standorten und bereits existierenden französischen Unternehmensstandorten im Ausland verdeutlicht eine gewisse frankophone Affinität. Zusätzlich werden französische Investoren oftmals auch von Firmen-Clustern anderer Nationen angezogen.

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  1. c/o Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr Graduate School in Economics (RGS Econ), Hohenzollernstr. 1–3, 45128, Essen, Germany

    Vivien Procher

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  1. Vivien Procher
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Correspondence to Vivien Procher.

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Procher, V. FDI location choices: Evidence from French first-time movers . AStA Wirtsch Sozialstat Arch 3, 209–220 (2009). https://doi.org/10.1007/s11943-009-0061-3

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