FDI location choices: Evidence from French first-time movers
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.
Procher, V. (2009), FDI location choices: Evidence from French first-time movers. AStA Wirtschafts- und Sozialstatistisches Archiv, 61, 3, 209-220