France FDI Inflows

France Defies Critics With FDI Paradox

OECD Foreign Direct Investment InflowsAfter ranting yesterday about the hopelessness of juicing the French economy while at the same time stifling the creative and corporate wealthy, I stumble on this Reuters article.

France defies critics with foreign investment paradox

  • French Q2 FDI inflows third biggest after China, U.S.
  • France top European destination for new foreign plants
  • Government sending foreign investors mixed messages

I suppose the interesting thing is how the FDI is broken down as over 75% of the FDI is ‘Other Capital Investment’. I’m really curious what ‘Other’ represents. If a Vineyard in France is sold to a Chinese investor would that fall under ‘Other’? My guess is, yes. Take for example the local anger over a Burgundy vineyard, here or Richard Shen Dongiun in Bordeaux, here.

France is a fiscal paradise for some.

Foreign Direct Investment is great until you’ve exhausted your supply of vineyards… The article speaks to the R&D advantage and the access to talent, but it ignores, ‘Other Capital Investment’.

Moreover, French firms invest more than double abroad what foreign companies invest in France. While that might reflect a healthy push for foreign market share, it could also be driven by a desire to avoid high labor costs at home.

“The question is whether the foreign investments reflect a decision not to invest in France,” Ferrand said.

To say the least, this ranking surprises me.

France FDI Inflows