Tax Policy, FDI and the Irish Economic Boom of the 1990s

Frank Barry
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Frank Barry: University College, Dublin

Economic Analysis and Policy, 2003, vol. 33, issue 2, 221-236

Abstract: This paper analyses the role of the Irish tax regime in the country's economic development. Corporation tax rates had been amongst the lowest in Europe for decades, leading to a strong FDI presence in the economy. The coincidence of the introduction of the Single European Market and the US-led high-tech boom fuelled high-tech FDI inflows into (and within) the EU over the 1990s, and Ireland captured a substantially-increased share of these inflows. This was an important contributory factor to the economic boom of the decade, which saw the country come to be dubbed the "Celtic Tiger economy". The country's competitiveness was further enhanced by developments on the income-tax front over this period.

Keywords: FDI (search for similar items in EconPapers)
JEL-codes: F21 H87 (search for similar items in EconPapers)
Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:33:y:2003:i:2:p:221-236

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