Now showing 1 - 10 of 43
  • Publication
    Foreign direct investment, agglomerations and demonstration effects : an empirical investigation
    (University College Dublin. School of Economics, 2001-03) ; ;
    Many previous studies have shown that the localisation of firms can be an important factor in attracting new foreign direct investment into a host country. What has been missing in this literature thus far, however, is an investigation into the reasons why industry clusters attract firms. We distinguish between “efficiency agglomerations” as firms locating close to each other because they can increase their efficiency by doing so, and “demonstration effects”, whereby existing firms send signals to new investors as to the reliability of the host country and newly entering firms follow previous firms. In this paper we try to disentangle these two effects, by examining the location of US and UK firms in Ireland. We calculate proxies for “efficiency agglomerations” and “demonstration effects” and include these proxies in an empirical model of the location decision of firms. For US firms, we find that both efficiency agglomeration and demonstration effects are important determinants of entry. For UK firms, however, the evidence is not as clear cut.
      604
  • Publication
    Openness, the Phillips Curve and the cost of relinquishing the currency
    (University College Dublin. School of Economics, 2001-03)
    For a given degree of wage stickiness, there is an inverse relationship between the price-level and employment effects of a nominal shock. Various contributors to the literature on optimal currency areas have extrapolated from this to argue that the real effects of exchange rate changes are smaller for more open economies, reducing the effectiveness of the exchange rate as a macroeconomic instrument. This would imply that more open economies face steeper Phillips curve trade-offs. This proposition has been challenged empirically however. This paper employs standard small-open-economy models to analyse these issues. The propositions are shown to be correct when the non-traded sector is monopolistically competitive. Whether they are true or false under competitive conditions depends on a simple condition that may or may not be satisfied in practice.
      118
  • Publication
    Aggregate-supply, aggregate-demand, and structural factors in recent Irish unemployment
    (University College Dublin. School of Economics, 1990-07)
    This paper aims, firstly, to present an overview of the causes of Ireland's poor employment performance in recent decades by drawing together the results of existing empirical research and secondly, to pinpoint some deficienceis in the empirical approaches adopted to date.
      216
  • Publication
    Making sense of the data on Ireland’s inward FDI
    (University College Dublin. School of Economics, 2006-12) ;
    Ireland, in employment terms, is the most FDI-intensive economy in the EU. International comparisons of trends and levels of FDI intensity are usually based on balance-of-payments data however, and the international data series on Ireland’s inward FDI tell hugely conflicting stories. Such series are published by the IMF, UNCTAD, OECD and Eurostat (with data generally provided either by the CSO or the IDA), while data on US FDI in Ireland are published by the US Bureau of Economic Analysis. The present paper documents these conflicting stories and searches for any underlying consistency through analysis of the items that the various databases include and exclude. FDI stock, flow and sectoral allocation data are explored and trends contrasted with what is known from MNC employment data.
      586
  • Publication
    The evolution of Zambia's macroeconomic crisis, 1970-90
    (University College Dublin. School of Economics, 1990-07)
      124
  • Publication
    Market liberalisation, monetary stabilisation and foreign debt : did Australia get it wrong in the 1980s?
    (University College Dublin. School of Economics, 1992-06)
    This paper argues that the Australian government made three errors when implementing the liberalisation and stabilisation programmes of the 1980's. International capital movements were liberalised at too high an Australian inflation rate; this deepened the later monetary-induced recession. The monetary contraction itself was supposedly aimed at reducing growth in foreign debt: theory and evidence, however, suggest that counter-inflationary policies increase foreign debt if the contraction occurs under free international capital mobility. By liberising international capital flows in advance of the major tariff cuts of the 1980's, finally, the negative effects of protectionism and the burden of adjustment to freer trade made have been increased. the policy errors led to an unnecessarily severe recession which may threaten further trade reform.
      104
  • Publication
      118
  • Publication
    Labour market performance in the EU periphery : lessons and implications
    (University College Dublin. School of Economics, 1994-03) ; ; ;
    The problems and challenges addressed in the Commission's White Paper on "Growth, Competitiveness, Employment" affects the peripheral member states acutely, and in a way that differs considerably from how the richer, more developed, core members are affected. To set the scene for our reflections on the White Paper, we briefly examine the economic context and the key stylised facts of the four main EU peripheral economies (Greece, Ireland, Portugal and Spain), and question whether much of the existing econometrics research literature presents a useful picture of how policies should be design to address their labour market and competitiveness problems. We then explore the relevance of the White Paper analysis and policy proposals, and deduce that a very different focus is required when moving from the core to the periphery. We conclude with an outline of the types of policy issues that arise in the periphery in assisting its transition to a higher level of development and a more satisfactory and robust labour market performance.
      227
  • Publication
    The Single Market and the geographical diversification of leading firms in the EU
    (University College Dublin. School of Economics, 2003-02) ;
    Geographical diversification describes the degree to which a firm’s operations in a particular industry are dispersed across countries. This paper presents evidence on the geographical diversification within the EU of the 290-odd largest manufacturing firms in Europe. We also explore how geographical diversification changed with the introduction of the Single Market. We highlight differences between firms’ home and foreign operations and study the variation across sectors and across EU countries. Ireland, which began its rapid FDI-fuelled convergence on average EU living standards over our data period, emerges as a special case and receives particular attention.
      385