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Why Ireland? A Qualitative Review of the Factors Influencing the Location of US Multinationals in Ireland with Particular Reference to the Impact of Labour Issues

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  • Patrick Gunnigle

    (University of Limerick)

  • David McGuire

    (University of Limerick)

Abstract

The encouragement of foreign direct investment (FDI) represents a key plank of industrial policy in Ireland. This paper considers the impact of labour issues on the decision of US multinational corporations (MNCs) to locate facilities in Ireland. Drawing on data gathered in ten major US corporations, and from executives employed in the main industrial promotions agencies, this paper evaluates the relative impact of labour issues on the location of MNCs. While our findings point to the critical significance of Ireland’s low corporate tax regime in attracting US FDI to Ireland, they also identify the relative impact of issues such as labour supply, quality and cost, and broader human resource management factors such as labour flexibility and trade union recognition, on the location decision of inward investing MNCs.

Suggested Citation

  • Patrick Gunnigle & David McGuire, 2001. "Why Ireland? A Qualitative Review of the Factors Influencing the Location of US Multinationals in Ireland with Particular Reference to the Impact of Labour Issues," The Economic and Social Review, Economic and Social Studies, vol. 32(1), pages 43-67.
  • Handle: RePEc:eso:journl:v:32:y:2001:i:1:p:43-67
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    1. repec:spr:manint:v:54:y:2014:i:3:d:10.1007_s11575-014-0202-y is not listed on IDEAS
    2. Michael Anyadike-Danes & Helena Lenihan & Mike Hart, 2009. "New Business Formation: An Important Element of Ireland's Rapid Growth Experience?," Working Papers wp380, Centre for Business Research, University of Cambridge.
    3. Valerie Cerra & Jarkko Soikkeli & Sweta C. Saxena, 2003. "How Competitive is Irish Manufacturing?," The Economic and Social Review, Economic and Social Studies, vol. 34(2), pages 173-193.
    4. McGuinness, Seamus & Kelly, Elish & O'Connell, Philip J., 2008. "The Impact of Wage Bargaining Regime on Firm-Level Competitiveness and Wage Inequality: The Case of Ireland," Papers WP266, Economic and Social Research Institute (ESRI).
    5. Emily E. Wiemers, 2017. "The Celtic Tiger and home leaving among Irish young adults," Review of Economics of the Household, Springer, vol. 15(1), pages 199-222, March.
    6. Frank Barry, 2006. "Foreign direct investment and institutional co-evolution in Ireland," Working Papers 200603, School of Economics, University College Dublin.
    7. Barry, Frank, 2005. "Future Irish Growth: Opportunities, Catalysts, Constraints," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 2005(4-Winter), pages 1-25.
    8. Frank Barry, 2005. "Third-level education, foreign direct investment and economic boom in Ireland," Working Papers 200509, School of Economics, University College Dublin.

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