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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

Author

Listed:
  • 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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    File URL: http://www.esr.ie/Vol32_1.pdf
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    References listed on IDEAS

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    1. John Haltiwanger, 1997. "Measuring and analyzing aggregate fluctuations: the importance of building from microeconomic evidence," Review, Federal Reserve Bank of St. Louis, issue May, pages 55-78.
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    3. Frances Ruane & Holger Görg, 1997. "The Impact of Foreign Direct Investment on Sectoral Adjustment in the Irish Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 160(1), pages 76-86, April.
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    5. Baldwin, John R., 1996. "Productivity Growth, Plant Turnover and Restructuring in the Canadian Manufacturing Sector," Analytical Studies Branch Research Paper Series 1995087e, Statistics Canada, Analytical Studies Branch.
    6. Richard Ericson & Ariel Pakes, 1995. "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," Review of Economic Studies, Oxford University Press, vol. 62(1), pages 53-82.
    7. Stefano Scarpetta & Andrea Bassanini & Dirk Pilat & Paul Schreyer, 2000. "Economic Growth in the OECD Area: Recent Trends at the Aggregate and Sectoral Level," OECD Economics Department Working Papers 248, OECD Publishing.
    8. Lucia Foster & John C. Haltiwanger & C. J. Krizan, 2001. "Aggregate Productivity Growth: Lessons from Microeconomic Evidence," NBER Chapters,in: New Developments in Productivity Analysis, pages 303-372 National Bureau of Economic Research, Inc.
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    11. Chin Hee Hahn, 2000. "Entry, Exit, and Aggregate Productivity Growth: Micro Evidence on Korean Manufacturing," OECD Economics Department Working Papers 272, OECD Publishing.
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Barry, Frank, 2005. "Future Irish Growth: Opportunities, Catalysts, Constraints," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), pages 1-25.
    5. Frank Barry, 2005. "Third-level education, foreign direct investment and economic boom in Ireland," Working Papers 200509, School of Economics, University College Dublin.
    6. 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).
    7. repec:spr:manint:v:54:y:2014:i:3:d:10.1007_s11575-014-0202-y is not listed on IDEAS
    8. Frank Barry, 2006. "Foreign direct investment and institutional co-evolution in Ireland," Working Papers 200603, School of Economics, University College Dublin.

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