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Reflections on Irish Industrial Policy towards Foreign Direct Investment

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  • Holger Görg
  • Frances Ruane

Abstract

Irish policy towards foreign direct investment has evolved since the 1950s as a strategy driven primarily by the use of fiscal incentives to enhance the profitability of locating in Ireland, with grants as required to achieve a particular bargaining advantage in competing against alternative international locations. Our empirical analysis of European firms in Ireland suggests that the investment incentives offered appear to have led to significant gross job gains in the targeted high-tech sectors, as proxied here by the Metals & Engineering and Chemicals sectors. However, these gross gains have not translated into net gains of a similar magnitude.

Suggested Citation

  • Holger Görg & Frances Ruane, 1997. "Reflections on Irish Industrial Policy towards Foreign Direct Investment," Economics Policy Papers 973, Trinity College Dublin, Department of Economics.
    • Handle: RePEc:tcd:tcduep:973
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    File URL: http://www.tcd.ie/Economics/TEP/1997/1997%20Policy%20Papers/973p.pdf
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    References listed on IDEAS

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    1. Lynn Killen & Frances Ruane, 1998. "The Regional Dimension of Industrial Policy and Performance in the Republic of Ireland," Economics Policy Papers 983, Trinity College Dublin, Department of Economics.
    2. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, December.
    3. Steven J. Davis & John Haltiwanger, 1990. "Gross Job Creation and Destruction: Microeconomic Evidence and Macroeconomic Implications," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 123-186, National Bureau of Economic Research, Inc.
    4. Kiesling, Lynne, 1996. "The European Economy 1750–1914: A Thematic Approach. Edited byDerek H. Aldcroft and Simon P. Ville · New York: St. Martin's Press, 1994. x + 323 pp. Tables, notes, and index. Paper, $29.95, ISBN 0-," Business History Review, Cambridge University Press, vol. 70(3), pages 429-431, October.
    5. Cooper, Russell & Haltiwanger, John, 1996. "Evidence on Macroeconomic Complementarities," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 78-93, February.
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    Cited by:

    1. Aidan Meyler, 1998. "Technology and Foreign Direct Investment in Ireland," Economics Technical Papers 9810, Trinity College Dublin, Department of Economics.
    2. Padoa Schioppa, Fiorella Kostoris & Basile, Roberto, 2002. "Unemployment Dynamics of the 'Mezzogiornos of Europe': Lessons for the Mezzogiorno of Italy," CEPR Discussion Papers 3594, C.E.P.R. Discussion Papers.
    3. Patrick Collins & Seamus Grimes, 2008. "Ireland's Foreign‐Owned Technology Sector: Evolving Towards Sustainability?," Growth and Change, Wiley Blackwell, vol. 39(3), pages 436-463, September.
    4. Kristof Dascher, 2000. "Trade, FDI, and Congestion - The small and very open Economy," Working Papers 200009, School of Economics, University College Dublin.
    5. Stephen Roper & Seamus Grimes, 2003. "Wireless Valley, Silicon Wadi and Digital Island - Helsinki, Tel Aviv and Dublin in the ICT Boom," ERSA conference papers ersa03p62, European Regional Science Association.
    6. Roper, Stephen & Smallbone, David & Vickers, Ian & North, David & Hewitt-Dundas, Nola, 2002. "Innovation and business performance - a provisional multi-regional analysis," ERSA conference papers ersa02p365, European Regional Science Association.
    7. Grace Tyng-Ruu Lin & Yo-Hsing Chang & Yung-Chi Shen, 2010. "Innovation policy analysis and learning: Comparing Ireland and Taiwan," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 22(7-8), pages 731-762, November.
    8. Mariana Zanatta & Eduardo Strachman & Flavia Carvalho & Pollyana C. Varrichio & Edilaine Camillo & Mariana Barra, 2008. "National Policies to Attract FDI in R&D: An Assessment of Brazil and Selected Countries," WIDER Working Paper Series RP2008-69, World Institute for Development Economic Research (UNU-WIDER).
    9. Stephen Roper, 2001. "Benchmarking Regional Innovation: A Comparison of Bavaria, Northern Ireland and the Republic of Ireland," ERSA conference papers ersa01p39, European Regional Science Association.
    10. Roper, Stephen & Frenkel, Amnon, 1999. "Different Paths to Success: The Growth of the Electronics Sector in Ireland and Israel," ERSA conference papers ersa99pa302, European Regional Science Association.
    11. Marcela de Oliveira Mazzoni & Eduardo Strachman, 2007. "Políticas Industriais E De Ciência, Tecnologia E Inovação Na Irlanda: Ênfase Em Setores De Alta Tecnologia E Uma Comparação Com O Brasil," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 074, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].

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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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