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Public Policy, FDI Attraction and Multinational Subsidiary Evolution: The Contrasting Cases of Ireland and Portugal

In: Multinationals on the Periphery

Author

Listed:
  • Ana Teresa Tavares-Lehmann

Abstract

Nowadays most host countries, developed and developing alike, engage in an ever-increasing ‘race’ to attract FDI and MNEs’ activities (Ghauri and Oxelheim, 2003). FDI attraction is one of the main ways by which governments seek to stimulate fast-track economic growth, under the assumption that the positive spillovers from FDI outweigh possible negative effects. This generalized, unprecedented chase for MNE operations is evident in the number of pro-FDI policy measures successively implemented (UNCTAD, 2004) and in the increasing proactivity and targeting of FDI-related policies. Countries (and even subnational jurisdictions) scramble to attract projects and to boost their attractiveness by granting higher incentives than their locational competitors. By and large, relevant research has serious doubts on the long-term effectiveness of such incentives (Young, 2004).

Suggested Citation

  • Ana Teresa Tavares-Lehmann, 2007. "Public Policy, FDI Attraction and Multinational Subsidiary Evolution: The Contrasting Cases of Ireland and Portugal," Palgrave Macmillan Books, in: Gabriel R. G. Benito & Rajneesh Narula (ed.), Multinationals on the Periphery, chapter 6, pages 131-157, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59304-6_6
    DOI: 10.1057/9780230593046_6
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    Cited by:

    1. Aurora A. C. Teixeira & Ana Sofia Loureiro, 2019. "FDI, income inequality and poverty: a time series analysis of Portugal, 1973–2016," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 18(3), pages 203-249, October.
    2. Crespo, Cátia Fernandes & Crespo, Nuno Fernandes & Curado, Carla, 2022. "The effects of subsidiary’s leadership and entrepreneurship on international marketing knowledge transfer and new product development," International Business Review, Elsevier, vol. 31(2).

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