discuss the impact of inward foreign direct investment on irelands economy ?

discuss the impact of inward foreign direct investment on irelands economy ?

 

answer:
Ireland was one of the first countries in the world to adopt an FDI-based development model, with the expertise of Industrial Development Agency (IDA) acting as a decisive factor in Ireland’s success as leading destination for global FDI. The policy has focussed on building sectoral and special clusters of MNCs with particular focus on high-tech industries. Ireland’s emerging information economy has also enabled it to become a leading global destination for internationally traded services. Ireland is now a significant beneficiary from the clustering that has occurred in the high-tech, life sciences, and digital media in particular. FDI has played a vital role to Ireland’s economic growth, and foreign companies are also responsible for one in seven jobs in Ireland. Inward FDI not only brings with it new investments that boost national income, but also an inflow of new foreign knowledge and technology. These inflows lead to spillovers to the local economy, resulting in higher productivity and increased national economic growth for Ireland. Inward FDI has been responsible for transforming Ireland from primarily an exporter agricultural products to a worldwide leader in the exportation of high-tech manufacturers.

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