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Export-platform foreign direct investment: the Irish experience

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  • Barry, Frank

    (University College Dublin)

Abstract

Ireland is the most successful EU economy in attracting export-platform foreign direct investment (FDI), and the increased FDI inflows of the 1990s are widely agreed to have been one of the most important factors in generating the remarkable boom that the country experienced over that decade. The present paper considers the confluence of factors - domestic policy changes, fortuitous developments in the European and global economic environment, and the coming to fruition of policy initiatives of earlier eras - that provided the setting for the increased inflows of the period and the changes that they wrought. One of the main findings is that growth-enhancing economic policies - including fiscal prudence, the maintenance of labour-market flexibility and a focus on scienceoriented human capital formation - were crucial for Ireland to derive the full benefits of its FDI-attracting low-corporation-tax regime.

Suggested Citation

  • Barry, Frank, 2004. "Export-platform foreign direct investment: the Irish experience," EIB Papers 6/2004, European Investment Bank, Economics Department.
    • Handle: RePEc:ris:eibpap:2004_006
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    References listed on IDEAS

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    13. Barry, F. & Bradley, J. & Kejak, M. & Vavra, D., 2000. "The Czech Economic Transition: Exploring Options Using a Macrosectoral Model," Papers 00/3, College Dublin, Department of Political Economy-.
    14. de la Fuente, Angel & Vives, Xavier, 1997. "The Sources of Irish Growth," CEPR Discussion Papers 1756, C.E.P.R. Discussion Papers.
    15. Nuno Crespo & Maria Paula Fontoura & Frank Barry, 2004. "EU Enlargement and the Portuguese Economy," The World Economy, Wiley Blackwell, vol. 27(6), pages 781-802, June.
    16. Frank Barry, 2000. "Convergence is not Automatic: Lessons from Ireland for Central and Eastern Europe," The World Economy, Wiley Blackwell, vol. 23(10), pages 1379-1394, October.
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    2. Ayumu Tanaka, 2022. "Higher wages in exporters and multinational firms evidence from linked employer–employee data," International Economics and Economic Policy, Springer, vol. 19(1), pages 51-78, February.
    3. repec:got:cegedp:58 is not listed on IDEAS
    4. Ronald B. Davies & James R. Markusen, 2020. "The Structure of Multinational Firms' International Activities," CESifo Working Paper Series 8150, CESifo.
    5. Markusen, James & Davies, Ronald, 2020. "The Structure of Firms' International Activities," CEPR Discussion Papers 14452, C.E.P.R. Discussion Papers.
    6. Köller, Mareike, 2006. "Ausländische Direktinvestitionen in Irland: Eine theoriegestützte Analyse," University of Göttingen Working Papers in Economics 58, University of Goettingen, Department of Economics.
    7. Ito, Banri & Tanaka, Ayumu & Jinji, Naoto, 2023. "Why do people oppose foreign acquisitions? Evidence from Japanese individual-level data," Japan and the World Economy, Elsevier, vol. 66(C).
    8. Byrne, Stephen & O'Brien, Martin, 2015. "The Changing Nature of Irish Exports: Context, Causes and Consequences," Quarterly Bulletin Articles, Central Bank of Ireland, pages 58-72, April.
    9. Nicholas Crafts, 2014. "Ireland’s Medium-Term Growth Prospects: a Phoenix Rising?," The Economic and Social Review, Economic and Social Studies, vol. 45(1), pages 87-112.
    10. Zoltán J. Ács & Colm O'Gorman & László Szerb & Siri Terjesen, 2015. "Could the Irish Miracle be Repeated in Hungary?," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 30, pages 584-603, Edward Elgar Publishing.
    11. James Foreman-Peck & Laurian Lungu & Patrick Minford, 2000. "Fiscal Devolution in a Small Open Regional Economy," Regional and Urban Modeling 283600029, EcoMod.
    12. Michael Anyadike-Danes & Mark Hart & Helena Lenihan, 2011. "New business formation in a rapidly growing economy: the Irish experience," Small Business Economics, Springer, vol. 36(4), pages 503-516, May.
    13. Anthony McDonnell & Jonathan Lavelle & Patrick Gunnigle & David G. Collings, 2007. "Management Research on Multinational Corporations: A Methodological Critique," The Economic and Social Review, Economic and Social Studies, vol. 38(2), pages 234-258.

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    More about this item

    Keywords

    Ireland; Foreign direct investment; research and development; human capital;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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