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Why Ireland? A Qualitative Review of the Factors Influencing the Location of US Multinationals in Ireland with Particular Reference to the Impact of Labour Issues

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  • Patrick Gunnigle

    (University of Limerick)

  • David McGuire

    (University of Limerick)

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    Abstract

    The encouragement of foreign direct investment (FDI) represents a key plank of industrial policy in Ireland. This paper considers the impact of labour issues on the decision of US multinational corporations (MNCs) to locate facilities in Ireland. Drawing on data gathered in ten major US corporations, and from executives employed in the main industrial promotions agencies, this paper evaluates the relative impact of labour issues on the location of MNCs. While our findings point to the critical significance of Ireland’s low corporate tax regime in attracting US FDI to Ireland, they also identify the relative impact of issues such as labour supply, quality and cost, and broader human resource management factors such as labour flexibility and trade union recognition, on the location decision of inward investing MNCs.

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    File URL: http://www.esr.ie/Vol32_1.pdf
    File Function: First version, 2001
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    Bibliographic Info

    Article provided by Economic and Social Studies in its journal Economic and Social Review.

    Volume (Year): 32 (2001)
    Issue (Month): 1 ()
    Pages: 43-67

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    Handle: RePEc:eso:journl:v:32:y:2001:i:1:p:43-67

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    Web page: http://www.esr.ie

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    Cited by:
    1. Frank Barry, 2005. "Third-Level Education, Foreign Direct Investment and Economic Boom in Ireland," Working Papers 200509, School Of Economics, University College Dublin.
    2. Valerie Cerra & Jarkko Soikkeli, 2002. "How Competitive is Irish Manufacturing?," IMF Working Papers 02/160, International Monetary Fund.
    3. Michael Anyadike-Danes & Helena Lenihan & Mike Hart, 2009. "New Business Formation: An Important Element of Ireland's Rapid Growth Experience?," ESRC Centre for Business Research - Working Papers wp380, ESRC Centre for Business Research.
    4. Frank Barry, 2006. "Foreign Direct Investment and Institutional Co-Evolution in Ireland," Working Papers 200603, School Of Economics, University College Dublin.
    5. Barry, Frank, 2005. "Future Irish Growth: Opportunities, Catalysts, Constraints," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2005(4-Winter), pages 1-25.
    6. McGuinness, Seamus & Kelly, Elish & O'Connell, Philip J., 2008. "The Impact of Wage Bargaining Regime on Firm-Level Competitiveness and Wage Inequality: The Case of Ireland," Papers WP266, Economic and Social Research Institute (ESRI).

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