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Building Export Capabilities by promoting Inter-Firm Linkages: Ireland’s Industrial Policy Revisited

Author

Listed:
  • Oi Li

    (School of Politics and International Relations + Geary Institute, University College Dublin)

  • Patrick Paul Walsh

    (School of Politics and International Relations + Geary Institute, University College Dublin)

  • Ciara Whelan

    (School of Economics, University College Dublin)

Abstract

For the period 1972-2003 in Ireland we document a persistent decline in traditional import competing and an expansion in exporting plants, within each sector. Yet, the focus of this paper is to explore the vertical linkages between exporting plants and the increasing presence of de novo non-exporting plants within industries during this period. Based the capabilities approach of Sutton (2007) and the creative destruction model of Aghion and Howitt (1992) we find evidence that forward dominated backward vertical linkages, in that innovation in de novo non-exporting plants was a key determinant of export entry, growth and survival within all sectors, while evidence of backward linkages are harder to find.

Suggested Citation

  • Oi Li & Patrick Paul Walsh & Ciara Whelan, 2007. "Building Export Capabilities by promoting Inter-Firm Linkages: Ireland’s Industrial Policy Revisited," Working Papers 200740, Geary Institute, University College Dublin.
    • Handle: RePEc:ucd:wpaper:200740
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    References listed on IDEAS

    as
    1. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
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    3. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    4. John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
    5. Mata, Jose & Portugal, Pedro & Guimaraes, Paulo, 1995. "The survival of new plants: Start-up conditions and post-entry evolution," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 459-481, December.
    6. Lall, Sanjaya, 1980. "Vertical Inter-Firm Linkages in LDCs: An Empirical Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(3), pages 203-226, August.
    7. Baldwin, John R. & Rafiquzzaman, Mohammed, 1995. "Selection versus evolutionary adaptation: Learning and post-entry performance," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 501-522, December.
    8. Ciara Whelan & Patrick P. Walsh, 2000. "The importance of structural change in industry for growth," Open Access publications 10197/134, School of Economics, University College Dublin.
    9. Baldwin,John R. & Gorecki,Paul, 1998. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521633574, September.
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    Cited by:

    1. Patrick Paul Walsh & Ciara Whelan, 2011. "Mr Whitaker and Industry: Setting the Record Straight–A Reply to Barry and Daly," The Economic and Social Review, Economic and Social Studies, vol. 42(2), pages 169-175.

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    More about this item

    Keywords

    Manufacturing; Structural Change; Trade liberalisation; Export Development and Inter-Firm Vertical Backward and Forward Linkages.;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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