Surviving the Crisis: Foreign Multinationals vs Domestic Firms in Ireland
AbstractStarting from the observation that all firms in Ireland (foreign and domestic in manufacturing and services industries) were hit by the crisis, the paper asks whether there is a difference in the behaviour of foreign and domestic firms. One hypothesis is that foreign multinationals are less linked into the Irish economy, so more likely to leave once the economy is hit by a negative shock. The paper discusses background hypotheses before giving empirical evidence from firstly aggregate data, and secondly firm-level observations. The analysis of the latter suggests that foreign firms are not more likely to leave during the crisis than Irish firms. Some policy conclusions are offered in the paper.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5882.
Length: 27 pages
Date of creation: Jul 2011
Date of revision:
Publication status: published in: The World Economy, 2012, 35 (10), 1305-1321
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Other versions of this item:
- Godart, Olivier & Görg, Holger & Hanley, Aoife, 2011. "Surviving the crisis: Foreign multinationals vs domestic firms in Ireland," CEPR Discussion Papers 8596, C.E.P.R. Discussion Papers.
- F3 - International Economics - - International Finance
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
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