Main Factors Affecting Food Industry Clustering in France

Abstract

This paper provides insight into the spatial structure of the French food sector by investigating the forces of agglomeration and dispersion that infl uence the location of food industries in France in 2007. We use Spatially Weighted two Stage Least Squares estimation, suggested by Kelejian and Prucha (2007), which enables us to analyze both types of endogeneity (spatial lag and Cluster).Results show that no agglomeration effect exists beyond the employment zone, and that a competition effect about attractiveness between those geographical areas rather exists. This is inherent to the defi nition of employment zones in France which are determined by the economic activity that develops within them.Results also show that agricultural employment, infrastructure and urbanisation are the main factors explaining the clustering of the agri-food industries. It is interesting to note that the infl uence of clusters policy increases this agglomeration.