FDI and trade: The Irish host-country experience

In Irish manufacturing, the foreign sector accounts for about one half of employment and some 60 % of gross gross output. The Irish experience therefore provides us with a textbook case study of the effects on an EU host economy of export-oriented FDI. We explore in this paper the structural changes induced by FDI and the effects of FDI on the determinants of growth in Ireland. We also consider some possible adverse effects that may he associated with such strong reliance on multinational investment.