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Multinational Firms’ Location and the New Economic Geography

New Horizons in International Business series
Edited by Jean-Louis Mucchielli, Professor of Economics, University of Paris I Panthéon-Sorbonne, Professor Affiliate, ESCP-EAP and Director, TEAM Pôle Economie Mondiale, CNRS, University of Paris I, France and Thierry Mayer, Professor of Economics, University of Paris-Sud, France, Scientific Advisor, CEPII, France, Research Affiliate, CERAS-ENPC, France and Research Affiliate, CEPR, UK
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.
Extent: 256 pp
Hardback Price: £88.00 Online: £79.20
Publication Date: 2004
ISBN: 978 1 84376 654 4
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  • Business and Management
  • International Business
  • Economics and Finance
  • Regional Economics
  • Environment
  • Geography
  • Economic Geography
  • Urban and Regional Studies
  • Regional Economics
The choice of location for the production plants of multinational firms is an important issue, not least because this decision is accompanied by so many fears brought into public debate. 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.

Giving insight into the direction that future research should take, this book contains state-of-the-art papers on both theoretical and empirical levels. This original collection makes a particularly important contribution to our understanding of the existence and impact of home market effects.

Introducing a welcome synthesis between two related and yet rarely integrated areas of study using case studies of firms in Europe, US MNEs and the Mexican automobile industry, this book will be welcomed by both academic and practising economists. Regional scientists and economists, and those with a specific interest in international trade issues will also find the book enlightening.
‘[This volume] brings together a collection of papers by researchers well versed in the “new” economic geography. The result is a book that combines the insights of both branches of economics and thereby enhances considerably our understanding of the location decisions of firms and determinants thereof . . . This is a fine volume with ten high-quality chapters. Bringing together researchers with backgrounds in new economic geography and multinational firms has proved to be a highly successful enterprise, and one is left to wish for more!’
– Holger Görg, Journal of Regional Science
Contributors: M. Crozet, J. De Sousa, A.-C. Disdier, F. Filippaios, K. Head, P. Koenig-Soubeyran, C. Kottaridi, T. Mayer, S. Montout, J.-L. Mucchielli, G.I.P. Ottaviano, M. Papanastassiou, R. Pearce, E. Pfister, F. Puech, J. Ries, L. Sleuwaegen, F. Trionfetti, R. Veugelers, H. Zitouna
Contents: Introduction Part I: Agglomeration and Multinational Firms’ Location Part II: Home Market Effects, Market Size and Location Strategies Index