Abstract
This chapter examines the determinants of Foreign Direct Investment (FDI) inflows in the French hospitality industry, updating estimates made in a previous study. Using a panel gravity model, we investigate the bilateral FDI stock inflows between France and 19 investor countries in the Hotels and Restaurant industry over 2000–2019. Our results show that bilateral FDI stock inflows between France and investor countries are positively affected by their income and are inversely proportional to the distance between them. It is also found that differentials between France and the investing countries in terms of taxes, labour costs, abundance of skilled labour, supply of public goods, and total FDI stock also play a significant role in understanding the foreign location decisions. Finally, the results show that France is particularly successful in attracting FDI in hospitality industry from French-speaking countries with a common border and cultural proximity with France.
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