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Tax Policy, FDI and the Irish Economic Boom of the 1990s

Author

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  • Barry, Frank

    (University College, Dublin)

Abstract

This paper analyses the role of the Irish tax regime in the country's economic development. Corporation tax rates had been amongst the lowest in Europe for decades, leading to a strong FDI presence in the economy. The coincidence of the introduction of the Single European Market and the US-led high-tech boom fuelled high-tech FDI inflows into (and within) the EU over the 1990s, and Ireland captured a substantially-increased share of these inflows. This was an important contributory factor to the economic boom of the decade, which saw the country come to be dubbed the "Celtic Tiger economy". The country's competitiveness was further enhanced by developments on the income-tax front over this period.

Suggested Citation

  • Barry, Frank, 2003. "Tax Policy, FDI and the Irish Economic Boom of the 1990s," Economic Analysis and Policy, Elsevier, vol. 33(2), pages 221-236, September.
    • Handle: RePEc:eee:ecanpo:v:33:y:2003:i:2:p:221-236
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    Cited by:

    1. Conefrey, Thomas & Fitz Gerald, John D., 2011. "The macro-economic impact of changing the rate of corporation tax," Economic Modelling, Elsevier, vol. 28(3), pages 991-999, May.

    More about this item

    Keywords

    FDI;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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