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Building Export Capabilities by promoting Inter-Firm Linkages: Ireland’s Industrial Policy Revisited

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Author Info
Oi Li (School of Politics and International Relations + Geary Institute, University College Dublin)
Patrick Paul Walsh (School of Politics and International Relations + Geary Institute, University College Dublin)
Ciara Whelan (School of Economics, University College Dublin)

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Abstract

For the period 1972-2003 in Ireland we document a persistent decline in traditional import competing and an expansion in exporting plants, within each sector. Yet, the focus of this paper is to explore the vertical linkages between exporting plants and the increasing presence of de novo non-exporting plants within industries during this period. Based the capabilities approach of Sutton (2007) and the creative destruction model of Aghion and Howitt (1992) we find evidence that forward dominated backward vertical linkages, in that innovation in de novo non-exporting plants was a key determinant of export entry, growth and survival within all sectors, while evidence of backward linkages are harder to find.

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File URL: http://geary.ucd.ie/images/Publications/WorkingPapers/gearywp200740.pdf
File Format: application/pdf
File Function: First version, 2007
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Publisher Info
Paper provided by Geary Institute, University College Dublin in its series Working Papers with number 200740.

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Length: 44 pages
Date of creation: 25 Dec 2007
Date of revision:
Handle: RePEc:ucd:wpaper:200740

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Related research
Keywords: Manufacturing; Structural Change; Trade liberalisation; Export Development and Inter-Firm Vertical Backward and Forward Linkages.;

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Find related papers by JEL classification:
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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References listed on IDEAS
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  1. Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000. "Plants and Productivity in International Trade," Boston University - Institute for Economic Development 105, Boston University, Institute for Economic Development. [Downloadable!]
    Other versions:
  2. Hall, Bronwyn H, 1987. "The Relationship between Firm Size and Firm Growth in the U.S. Manufacturing Sector," Journal of Industrial Economics, Blackwell Publishing, vol. 35(4), pages 583-606, June. [Downloadable!] (restricted)
    Other versions:
  3. Lall, Sanjaya, 1980. "Vertical Inter-Firm Linkages in LDCs: An Empirical Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(3), pages 203-26, August.
  4. Baldwin, John R. & Rafiquzzaman, Mohammed, 1995. "Selection versus evolutionary adaptation: Learning and post-entry performance," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 501-522, December. [Downloadable!] (restricted)
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  5. Mata, Jose & Portugal, Pedro & Guimaraes, Paulo, 1995. "The survival of new plants: Start-up conditions and post-entry evolution," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 459-481, December. [Downloadable!] (restricted)
    Other versions:
  6. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-51, March. [Downloadable!] (restricted)
    Other versions:
  7. Mata, Jose, 1994. " Firm Growth during Infancy," Small Business Economics, Springer, vol. 6(1), pages 27-39, February.
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