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Labour Productivity and Foreign Direct Investment in Irish Manufacturing Industry - A Decomposition Analysis

Author

Listed:
  • Frances Ruane

    (Institute for International Integration Studies at Trinity College Dublin)

  • Ali Ugur

    (Institute for International Integration Studies at Trinity College Dublin)

Abstract

Overall labour productivity in the Irish manufacturing sector increased by 158 per cent between 1991 and 1999. This paper examines the components of this labour productivity growth in the period 1991-1999, using a decomposition analysis based on plant level data. In order to account for the large presence of foreign plants we carry out our analysis separately for foreign and domestic plants, as well as for four ownership subgroups, four sectoral subgroups, and two time sub-periods. Our results show that although the main drivers of average labour productivity growth in all groups arise within plant and from plant entry, there are marked differences in the relative sizes of these effects across ownership/sector/time-period.

Suggested Citation

  • Frances Ruane & Ali Ugur, 2005. "Labour Productivity and Foreign Direct Investment in Irish Manufacturing Industry - A Decomposition Analysis," The Economic and Social Review, Economic and Social Studies, vol. 36(1), pages 19-43.
    • Handle: RePEc:eso:journl:v:36:y:2005:i:1:p:19-43
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    References listed on IDEAS

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    Cited by:

    1. Godart, Olivier & Görg, Holger & Hanley, Aoife, 2011. "Surviving the Crisis: Foreign Multinationals vs Domestic Firms in Ireland," IZA Discussion Papers 5882, Institute of Labor Economics (IZA).
    2. Salvador Barrios & Holger Görg & Eric Strobl, 2016. "Spillovers through backward linkages from multinationals: Measurement matters!," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 11, pages 213-226, World Scientific Publishing Co. Pte. Ltd..
    3. Carol Newman, 2006. "The impact of globalisation and trade on the productivity performance of the Irish food manufacturing sector," The Institute for International Integration Studies Discussion Paper Series iiisdp180, IIIS.
    4. Martina Lawless & J. Peter Neary & Zuzanna Studnicka, 2019. "South-North Trade in Ireland: Gravity and Firms from the Good Friday Agreement to Brexit," The Economic and Social Review, Economic and Social Studies, vol. 50(4), pages 751-766.
    5. Godart, Olivier & Görg, Holger & Hanley, Aoife, 2011. "Surviving the crisis: Foreign multinationals vs domestic firms," Kiel Working Papers 1700, Kiel Institute for the World Economy (IfW Kiel).
    6. Di Ubaldo, Mattia & Lawless, Martina & Siedschlag, Iulia, 2018. "Productivity spillovers from multinational activity to indigenous firms in Ireland," Papers WP587, Economic and Social Research Institute (ESRI).

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