In Irish manufacturing, the foreign sector accounts for about one half of employment and some 60 percent of gross output. The Irish experience therefore provides the authors with a textbook case study of the effects on an EU host economy of export-oriented foreign direct investment (FDI). They explore in this paper the structural changes induced by FDI and the effects of FDI on the determinants of growth in Ireland. The authors also consider some possible adverse effects that may be associated with such strong reliance on multinational investment.
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Barry et al. (1997) studied this question.
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