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The tangible contribution of R&D-spending foreign-owned plants to a host region: a plant level study of the Irish manufacturing sector (1980-1996)

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  • Kearns, Allan
  • Ruane, Frances

Abstract

Using plant level data from the Irish manufacturing sector, we explore the relationship between foreign direct investment (FDI) and economic growth in Ireland. The central question explored in this paper is whether the tangible contribution of MNC plants which undertake R&D investment in Ireland is greater than the tangible contribution of MNC plants which undertake no R&D investment. We conclude that the scale of R&D activity in a plant is an important determinant in (i) lengthening the duration over which that plant will remain in Ireland and (ii) in improving the quality of employment created in that plant.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 30 (2001)
Issue (Month): 2 (February)
Pages: 227-244

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Handle: RePEc:eee:respol:v:30:y:2001:i:2:p:227-244

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  1. Barry, F & Bradley, J, 1997. ""FDI and Trade : The Irish Host-Country Experience"," Papers, College Dublin, Department of Political Economy- 97/13, College Dublin, Department of Political Economy-.
  2. Blomstrom, Magnus & Kokko, Ari, 1998. " Multinational Corporations and Spillovers," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 12(3), pages 247-77, July.
  3. Damien NEVEN & George SIOTIS, 1995. "Technology Sourcing and FDI in the EC : An Empirical Evaluation," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP), Université de Lausanne, Faculté des HEC, DEEP 9508, Université de Lausanne, Faculté des HEC, DEEP.
  4. Steven J. Davis & John Haltiwanger, 1990. "Gross Job Creation and Destruction: Microeconomic Evidence and Macroeconomic Implications," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 123-186 National Bureau of Economic Research, Inc.
  5. Jozef Konings & Patrick P. Walsh, 1997. "The Effect of Real Exchange Rate Movements on the Life Expectancy of Manufacturing Plants in Ireland, 1973-94," Economics Technical Papers, Trinity College Dublin, Department of Economics 977, Trinity College Dublin, Department of Economics.
  6. Audretsch, David B, 1991. "New-Firm Survival and the Technological Regime," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 441-50, August.
  7. McAleese, Dermot & McDonald, Donogh, 1978. "Employment Growth and the Development of Linkages in Foreign-Owned and Domestic Manufacturing Enterprises," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 40(4), pages 321-39, November.
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Cited by:
  1. David Bailey & Helena Lenihan & Ajit Singh, 2008. "Tiger, Tiger, Burning Bright? Industrial Policy Lessons from Ireland and East Asia for Small African Economies," ESRC Centre for Business Research - Working Papers, ESRC Centre for Business Research wp374, ESRC Centre for Business Research.
  2. Hewitt-Dundas, Nola & Roper, Stephen, 2002. "Closing the knowledge gap in Irish manufacturing - a north-south comparison," ERSA conference papers ersa02p382, European Regional Science Association.
  3. Frank Barry & Holger Görg & Eric Strobl, 2001. "Foreign Direct Investment, Agglomerations and Demonstration Effects - An Empirical Investigation," Working Papers, School Of Economics, University College Dublin 200104, School Of Economics, University College Dublin.
  4. 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, Economic and Social Studies, vol. 38(2), pages 234-258.
  5. Fabienne Fortanier & Selwyn Moons, 2011. "Foreign Investors in The Netherlands: Heterogeneous Employment and Productivity Effects," De Economist, Springer, Springer, vol. 159(4), pages 511-531, December.

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