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Third-level education, foreign direct investment and economic boom in Ireland

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  • Frank Barry

Abstract

Ireland’s dramatic economic boom of the 1990s has been referred to as “the era of the Celtic Tiger”. In a little over a decade, real national income per head jumped from 65 percent of the Western European average to above parity, unemployment tumbled from double to less than half the European Union average and numbers at work increased by over 50 percent. Much research has been carried out on the impact of each of the separate elements agreed to have been important in stimulating or sustaining the boom. The present paper focuses on one key under-researched synergy – the nexus between the country’s industrial strategy, which focused on attracting foreign direct investment in certain high-tech sectors, and the orientation of the third-level educational system that had been developed in Ireland over recent decades.

Suggested Citation

  • Frank Barry, 2005. "Third-level education, foreign direct investment and economic boom in Ireland," Working Papers 200509, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:wpaper:200509
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    File URL: http://hdl.handle.net/10197/1299
    File Function: First version, 2005
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    References listed on IDEAS

    as
    1. Frank Barry & Holger Görg & Eric Strobl, 2004. "Foreign direct investment, agglomerations, and demonstration effects: An empirical investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(3), pages 583-600, September.
    2. Frank Barry & Declan Curran, 2004. "Enlargement and the European geography of the Information Technology sector," Working Papers 200405, School of Economics, University College Dublin.
    3. Nickell, Stephen & Bell, Brian, 1996. "Changes in the Distribution of Wages and Unemployment in OECD Countries," American Economic Review, American Economic Association, vol. 86(2), pages 302-308, May.
    4. Gropp, Reint & Kostial, Kristina, 2000. "The disappearing tax base: is foreign direct investment eroding corporate income taxes?," Working Paper Series 0031, European Central Bank.
    5. Prais,S. J., 1995. "Productivity, Education and Training," Cambridge Books, Cambridge University Press, number 9780521556675, Fall.
    6. Rosanne Altshuler & Harry Grubert & T. Scott Newlon, 2000. "Has U.S. Investment Abroad Become More Sensitive to Tax Rates?," NBER Chapters,in: International Taxation and Multinational Activity, pages 9-38 National Bureau of Economic Research, Inc.
    7. Patrick Honohan & Brendan Walsh, 2002. "Catching Up with the Leaders: The Irish Hare," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(1), pages 1-78.
    8. Barry, Frank, 2002. "FDI, Infrastructure and the Welfare Effects of Labour Migration," CEPR Discussion Papers 3380, C.E.P.R. Discussion Papers.
    9. Frank Barry & Declan Curran, 2004. "Enlargement and the European Geography of the Information Technology Sector," The World Economy, Wiley Blackwell, vol. 27(6), pages 901-922, June.
    10. Frank Barry, 2000. "Convergence is not Automatic: Lessons from Ireland for Central and Eastern Europe," The World Economy, Wiley Blackwell, vol. 23(10), pages 1379-1394, October.
    11. O'Riain,Sean, 2004. "The Politics of High Tech Growth," Cambridge Books, Cambridge University Press, number 9780521830737, Fall.
    12. Barrett, Alan & FitzGerald, John & Nolan, Brian, 2002. "Earnings inequality, returns to education and immigration into Ireland," Labour Economics, Elsevier, vol. 9(5), pages 665-680, November.
    13. 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.
    14. Ferreira, Luisa & Vanhoudt, Patrick, 2002. "Catching The Celtic Tiger By Its Tail," Economic and Financial Reports 2002/1, European Investment Bank, Economics Department.
    15. James R. Markusen, 1988. "Production, Trade, and Migration with Differentiated, Skilled Workers," Canadian Journal of Economics, Canadian Economics Association, vol. 21(3), pages 492-506, August.
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    Cited by:

    1. Shandre M. Thangavelu & Hu Guangzhou, 2006. "Lessons from "benchmark" countries : Korea & Ireland," Labor Economics Working Papers 21820, East Asian Bureau of Economic Research.

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