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FDI and Trade: The Irish Host-Country Experience


  • Barry, Frank
  • Bradley, John


In Irish manufacturing, the foreign sector accounts for about one half of employment and some 60 percent of gross output. The Irish experience therefore provides the authors with a textbook case study of the effects on an EU host economy of export-oriented foreign direct investment (FDI). They explore in this paper the structural changes induced by FDI and the effects of FDI on the determinants of growth in Ireland. The authors also consider some possible adverse effects that may be associated with such strong reliance on multinational investment. Copyright 1997 by Royal Economic Society.

Suggested Citation

  • Barry, Frank & Bradley, John, 1997. "FDI and Trade: The Irish Host-Country Experience," Economic Journal, Royal Economic Society, vol. 107(445), pages 1798-1811, November.
  • Handle: RePEc:ecj:econjl:v:107:y:1997:i:445:p:1798-1811

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    References listed on IDEAS

    1. Blomström, Magnus & Kokko, Ari, 1994. "Home Country Effects of Foreign Direct Investment: Evidence from Sweden," SSE/EFI Working Paper Series in Economics and Finance 3, Stockholm School of Economics.
    2. Stevens, Guy V. G. & Lipsey, Robert E., 1992. "Interactions between domestic and foreign investment," Journal of International Money and Finance, Elsevier, vol. 11(1), pages 40-62, February.
    3. Roger Svensson, 1996. "Effects of overseas production on home country exports: Evidence based on Swedish multinationals," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 132(2), pages 304-329, September.
    4. Lipsey, Robert E & Weiss, Merle Yahr, 1981. "Foreign Production and Exports in Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 488-494, November.
    5. Irving B. Kravis & Robert E. Lipsey, 1988. "The Effect of Multinational Firms' Operations on Their Domestic Employment," NBER Working Papers 2760, National Bureau of Economic Research, Inc.
    6. Robert E. Baldwin, 1988. "Trade Policy Issues and Empirical Analysis," NBER Books, National Bureau of Economic Research, Inc, number bald88-2, January.
    7. repec:mes:challe:v:31:y:1988:i:4:p:56-58 is not listed on IDEAS
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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity


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