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

  • 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)

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://www.ucd.ie/geary/static/publications/workingpapers/gearywp200740.pdf
File Function: First version, 2007
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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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  1. repec:cup:cbooks:9780521465618 is not listed on IDEAS
  2. 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.
  3. Hall, Bronwyn H, 1987. "The Relationship between Firm Size and Firm Growth in the U.S. Manufacturing Sector," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 583-606, June.
  4. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
  5. McAleese, D., 1971. "Effective Tariffs and the Structure of Industrial Protection in Ireland," Research Series, Economic and Social Research Institute (ESRI), number GRS62.
  6. 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.
  7. Andrew B Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000. "Plants and productivity in international trade," Working Papers 00-08, Center for Economic Studies, U.S. Census Bureau.
  8. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  9. 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.
  10. Andrew B. Bernard & J. Bradford Jensen, 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," NBER Working Papers 6272, National Bureau of Economic Research, Inc.
  11. repec:cup:cbooks:9780521633574 is not listed on IDEAS
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