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Title:European integration and peripherality : are there lessons from Ireland? PDF Logo
Authors:Görg, Holger
Ruane, Frances P.
Issue Date:1999
Series/Report no.:Trinity economic paper 1999,10
Abstract:This paper suggests that the process of economic integration can generate positive effects for peripheral economies by increasing their attractiveness as a production base for multinational companies. Such investment is likely in the case of goods for which transportation costs are relatively low. Our analysis shows that US investment in Ireland illustrates this process, having increased considerably after 1992, in particular in the "weightless" electronics sector. It shows, however, that other peripheral countries in the EU, namely Greece, Portugal and Spain, have not been successful in attracting a proportionate share of the increased US investment following the process of integration. This suggests that economic integration may be a necessary, but not a sufficient condition for a peripheral country to attract MNCs; other variables such as language and culture, industrial policy and developing agglomerations also count.
JEL:F15
F20
F23
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW

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