FDI's Contribution to Ireland's Economic Development and Success

Better Essays
How has FDI in Ireland contributed to our economic development and what are the prospects of attracting FDI capable of a making a similar contribution to sustainable economic growth in the future. Ireland is one of Europe’s leading locations for FDI. “Multinational enterprises are a very significant component of the Irish enterprise sector and will continue to play an important role in our economy” (Houses of the Oireachtas, 2012). Abstract This piece examines the critical importance of FDI in the growth of Ireland. It explains the reasons for Ireland’s success. The analysis is carried out in terms of employment, exports, outputs, Government assistance and advantages and disadvantages of FDI’s investing in Ireland.…show more content…
“In the same quarter in 2013 there were 375,000 employees. This was a year on year change of (3,900)” (CS0, 2013). With such a high rate of unemployment on-going, a small reduction has emerged in the amount of people signing onto the live register. This could be due to the increasing levels of FDI and increasing job creation amidst many job losses. “The number of people on the Live Register fell by 3,300 last month, bringing the figure to the lowest it’s been since May 2009. The total number of people signing on in the last month of the year was 402,800, representing an annual decrease of 28,322/ 6.7%” (Business-ETC, 2014). Exports “The number of investments was strong in 2013 with 164 projects won for Ireland, of these 78 came from companies investing in Ireland for the first time, a rise of 18% on the previous year” (IDA, 2014). Among the leading investments secured during the year were Deutsche Bank, Twitter, EMC and eBay. “In December of 2007, exports were at a level of €6,360 million comparing this to December 2012 when it was at a level of €6,840 million” (CSO, 2013). This shows an increase despite significant fluctuation in the years between. Ireland’s net FDI had fallen by 19.2 billion since 2010, leaving a net inflow of 194.5 billion. There was a sharp contrast between September 2013 and September 2012 as the value of “exports decreased by €118 million (-2%) to €7,346 million. The main drivers were a decrease of €332
Get Access