European Integration and Peripherality: Are There Lessons from Ireland
AbstractThis paper suggests that the process of economic integration can generate positive effects for peripheral economies by increasing their attractiveness as a production base for multinational companies. Such investment is likely in the case of goods for which transportation costs are relatively low. Our analysis shows that US investment in Ireland illustrates this process, having increased considerably after 1992, in particular in the "weightless" electronics sector. It shows, however, that o other peripheral countries in the EU, namely Greece, Portugal and Spain, have not been successful in attracting a proportionate share of the increased US investment following the process of integration. This suggests that economic integration may be a necessary, but not a sufficient condition for a peripheral country to attract MNCs; other variables such as language and culture, industrial policy and developing agglomerations also count.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number 9910.
Date of creation: 1999
Date of revision:
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- F20 - International Economics - - International Factor Movements and International Business - - - General
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Patricia Hughes).
If references are entirely missing, you can add them using this form.