Ireland is the most successful EU economy in attracting export-platform foreign direct investment (FDI), and the increased FDI inflows of the 1990s are widely agreed to have been one of the most important factors in generating the remarkable boom that the country experienced over that decade. The present paper considers the confluence of factors - domestic policy changes, fortuitous developments in the European and global economic environment, and the coming to fruition of policy initiatives of earlier eras - that provided the setting for the increased inflows of the period and the changes that they wrought. One of the main findings is that growth-enhancing economic policies - including fiscal prudence, the maintenance of labour-market flexibility and a focus on scienceoriented human capital formation - were crucial for Ireland to derive the full benefits of its FDI-attracting low-corporation-tax regime.
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Paper provided by European Investment Bank, Economic and Financial Studies in its series EIB Papers with number
6/2004.
Find related papers by JEL classification: F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies O24 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Frank Barr & Maria Paula Fontoura & Nuno Crespo, 2003.
"EU Enlargement and the Portuguese Economy,"
Working Papers
2003/06, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon..
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