The location of domestic and foreign production affiliates by French multinational firms
In this paper we combine two traditions in the analysis of firms’ location patterns. One led by trade economists who try to understand why do firms invest abroad, and another one led by urban/regional economists, who frequently use patterns of inter-regional or inter-city choices to estimate agglome...
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| Veröffentlicht in: | Journal of urban economics 2010-09, Vol.68 (2), p.115-128 |
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| container_end_page | 128 |
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| container_title | Journal of urban economics |
| container_volume | 68 |
| creator | Mayer, T. Mejean, I. Nefussi, B. |
| description | In this paper we combine two traditions in the analysis of firms’ location patterns. One led by trade economists who try to understand why do firms invest
abroad, and another one led by urban/regional economists, who frequently use patterns of
inter-regional or inter-city choices to estimate agglomeration economies. We contribute to the trade-motivated set of papers on location choices by adding the domestic country in the choice set, while accounting for firm’s heterogeneity in the choices. Our econometric results using French firm-level data show an important “home bias” in manufacturing investment decisions. A crucial finding, which bridges with our contribution to the agglomeration literature, is that the spatial clustering of affiliates belonging to the same industrial group accounts for the lion’s share of this home bias. |
| doi_str_mv | 10.1016/j.jue.2010.03.006 |
| format | Article |
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abroad, and another one led by urban/regional economists, who frequently use patterns of
inter-regional or inter-city choices to estimate agglomeration economies. We contribute to the trade-motivated set of papers on location choices by adding the domestic country in the choice set, while accounting for firm’s heterogeneity in the choices. Our econometric results using French firm-level data show an important “home bias” in manufacturing investment decisions. 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| fulltext | fulltext |
| identifier | ISSN: 0094-1190 |
| ispartof | Journal of urban economics, 2010-09, Vol.68 (2), p.115-128 |
| issn | 0094-1190 1095-9068 |
| language | eng |
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| source | RePEc; Access via ScienceDirect (Elsevier) |
| subjects | Agglomeration economies Conditional logit model Decision making Economic geography Economic theory Economics and Finance Foreign enterprises Foreign investment France Humanities and Social Sciences Investment decision Location choice Location choice Multinational firms Agglomeration economies Conditional logit model Location of enterprises Location of industry Logit models Multinational corporations Multinational enterprises Multinational firms Studies Urban agglomeration |
| title | The location of domestic and foreign production affiliates by French multinational firms |
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