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Multinational Enterprise Integration in the Irish Value Chain

Author

Listed:
  • O'Grady, Michael

    (Central Bank of Ireland)

Abstract

Foreign MNE affiliates generate and contribute markedly to Irish output, value added, exports, imports and employment, while the majority of corporation tax derives directly from the income of multi-national firms. To better understand the effects of multinational firms in the Irish economy, this paper analyzes the linkages of MNE affiliates in the domestic supply chain. To do so, we construct original symmetric input-output tables at the NACE sector level, extended across ownership structures, with the distortionary effects of globalisation-related activities removed from the data. Using these tables, we estimate a range of analytical measures to determine the strength and direction of economic interconnections across the domestic supply chain, identify the indigenous and MNE controlled sectors whose economic activity exerts the greatest influence on the domestic economy, and estimate which sectors likely benefit most from technological innovation / increased production efficiency at an aggregate level.

Suggested Citation

  • O'Grady, Michael, 2024. "Multinational Enterprise Integration in the Irish Value Chain," Research Technical Papers 5/RT/24, Central Bank of Ireland.
    • Handle: RePEc:cbi:wpaper:5/rt/24
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    FDI; Multi-National Enterprises; I-O Tables; Network Analysis.;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G01 - Financial Economics - - General - - - Financial Crises
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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