Outward FDI and the investment development path of a late-industrialising economy : evidence from Ireland

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Title: Outward FDI and the investment development path of a late-industrialising economy : evidence from Ireland
Authors: Barry, Frank
Görg, Holger
McDowell, Andrew
Permanent link: http://hdl.handle.net/10197/1255
Date: Apr-2001
Abstract: The Investment Development Path (IDP) hypothesis holds that a country’s net outward direct investment position is systematically related to its level of economic development. Ireland is an interesting test case because of the importance of inward FDI over the last three decades, the country's rapid recent FDI-fuelled growth, and the recent increase in outward FDI by Irish-owned multinationals. We find empirical support for the IDP concept for the Irish case. Our sectoral analysis shows up important differences between Ireland's outward FDI and the bulk of FDI occurring in the world economy however. Ireland's outward FDI flows are as yet almost exclusively horizontal and they go largely into non-internationally-tradable manufacturing and services sectors. Also, the firm specific assets of Irish multinationals lie neither in R&D nor in the type of product differentiation associated with high advertising expenditures.
Funding Details: European Commission Training and Mobility of Researchers programme; European Commission Research, Technological Development programme
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP01/08
Keywords: Outward FDIInvestment development pathIreland
Subject LCSH: Investments, Foreign--Ireland
Capital movements--Ireland
Ireland--Economic conditions--21st century
Other versions: http://www.ucd.ie/economics/research/papers/2001/WP01.08.pdf
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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