Foreign direct investment
CA Assignment on Foreign Direct Investment
Introduction:
Over the past twenty years Ireland has taken policy steps to encourage foreign direct investment to Ireland. The aim has been to help promote economic growth and employment creation in particular. In this paper I will first outline the key policy measures taken. I will then discuss how successful they have been. Finally I will consider the threats to achieving Ireland’s policy objectives in this area in the future.
It is important for a small country like Ireland to trade with others, and in order to trade we must have the appropriate organisations set up and invested here to do so. There has been evidence that would suggest exporting can improve a country’s economic growth. This is essential for Ireland as the majority of Irelands manufacturing goods are exported increasing Ireland’s economic growth.
Policy approach:
Ireland over the past 20 years has used value added growth as its key economic development strategy. The main focus was on attracting foreign direct investment and increasing productivity within Ireland and achieving economic growth. The government used many policies such as a low corporation tax rate and a tax relief on research and development and offering grants to encourage foreign investors to set up here.
According to IDA Ireland, Ireland also focussed on attracting high tech companies in the I.T and pharmaceutical industry. This has proven successful as many large companies such as Pfizer, Microsoft and Google have set up here employing many people in well-paid jobs within these sectors. The government policy of increasing the number of places at 3rd level education and abolishing 3rd level fees helped provide a highly skilled and flexible workforce.
There are four key advantages from inward Foreign Direct Investment. They are the resource transfer effects such as technology, capital and management resources. The second advantage is the employment effects, meaning the
Introduction:
Over the past twenty years Ireland has taken policy steps to encourage foreign direct investment to Ireland. The aim has been to help promote economic growth and employment creation in particular. In this paper I will first outline the key policy measures taken. I will then discuss how successful they have been. Finally I will consider the threats to achieving Ireland’s policy objectives in this area in the future.
It is important for a small country like Ireland to trade with others, and in order to trade we must have the appropriate organisations set up and invested here to do so. There has been evidence that would suggest exporting can improve a country’s economic growth. This is essential for Ireland as the majority of Irelands manufacturing goods are exported increasing Ireland’s economic growth.
Policy approach:
Ireland over the past 20 years has used value added growth as its key economic development strategy. The main focus was on attracting foreign direct investment and increasing productivity within Ireland and achieving economic growth. The government used many policies such as a low corporation tax rate and a tax relief on research and development and offering grants to encourage foreign investors to set up here.
According to IDA Ireland, Ireland also focussed on attracting high tech companies in the I.T and pharmaceutical industry. This has proven successful as many large companies such as Pfizer, Microsoft and Google have set up here employing many people in well-paid jobs within these sectors. The government policy of increasing the number of places at 3rd level education and abolishing 3rd level fees helped provide a highly skilled and flexible workforce.
There are four key advantages from inward Foreign Direct Investment. They are the resource transfer effects such as technology, capital and management resources. The second advantage is the employment effects, meaning the
Bibliography: www.idaIreand.com (viewed 20-10-13) OECD 2013: Education at a glance 2013 http://www.oecd.org/edu/eag2013%20(eng)--FINAL%2020%20June%202013.pdf (viewed 21-10-13) IMD world competitiveness yearbook 2013 Economist Intelligence Unit 2008-2012 Global Innovation Index 2012 http://www.globalinnovationindex.org/content.aspx?page=GII-Home (viewed 25-10-13) World Bank Doing Business 2013 http://www.doingbusiness.org/~/media/GIAWB/Doing%20Business/Documents/Annual-Reports/English/DB13-full-report.pdf (viewed 29-10-13) Site Selection 2013 http://www.siteselection.com/ (viewed 29-10-13) Eurostat 2013 http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/ (viewed 1-11-13)