Multinational Firms’ Location and the New Economic Geography
Show Less

Multinational Firms’ Location and the New Economic Geography

Edited by Jean-Louis Mucchielli and Thierry Mayer

This book analyses how foreign direct investors choose their locations, whilst exploring the forces which shape international economic geography. Although these two issues are, to some extent, inter-related, researchers have only recently acknowledged the similarity of economic geography and international business approaches to the empirical assessment of likely causes of the degree of spatial concentration observed in many modern industries.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 2: Globalization, agglomeration and FDI location: the case of French firms in Europe

Jean-Louis Muchielli and Florence Puech


2. Globalization, agglomeration and FDI location: the case of French firms in Europe Jean-Louis Mucchielli and Florence Puech INTRODUCTION 2.1 Even though French firms started to invest abroad only recently (French FDI flows were almost insignificant before the second half of the 1980s), nowadays France plays an important role in the world with its international investments. Despite an important decline of its FDI outflows in 2001, France became the second most important investor ($82.8 billion) behind the USA (UNCTAD, 2002). However, multinational firms’ location strategies are generally developed by a concentric process illustrated by a progressive international diffusion of their activities. At the beginning of the internationalization process, plants are settled in border countries and, then, multinationals progressively invest in farther territories. But at the end of 2000, French international investments are still strongly located in the European area: more than the half of the French FDI outwards stock is located in Europe.1 As regards determinants of firms’ internationalization, two approaches are complementary. The first is to identify the main incentives which influence the choice of producing abroad (‘why do firms internationalize their activities?’). The second concerns firms’ international location choice (‘where do firms locate?’). With the renewal of interest of spatial economic geography, increasing numbers of articles in economic literature are devoted to multinational firms’ location. An important part of these recent studies emphasizes the phenomenon of FDI agglomeration (see Ferrer, 1998, for French FDI in European regions; Ford and Strange, 1999, or...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.