Public Policy, FDI Attraction and Multinational Subsidiary Evolution: The Contrasting Cases of Ireland and Portugal

Ana Teresa Tavares-Lehmann

Chapter 6 in Multinationals on the Periphery, 2007, pp 131-157 from Palgrave Macmillan

Abstract: Abstract Nowadays most host countries, developed and developing alike, engage in an ever-increasing ‘race’ to attract FDI and MNEs’ activities (Ghauri and Oxelheim, 2003). FDI attraction is one of the main ways by which governments seek to stimulate fast-track economic growth, under the assumption that the positive spillovers from FDI outweigh possible negative effects. This generalized, unprecedented chase for MNE operations is evident in the number of pro-FDI policy measures successively implemented (UNCTAD, 2004) and in the increasing proactivity and targeting of FDI-related policies. Countries (and even subnational jurisdictions) scramble to attract projects and to boost their attractiveness by granting higher incentives than their locational competitors. By and large, relevant research has serious doubts on the long-term effectiveness of such incentives (Young, 2004).

Keywords: Foreign Direct Investment; Host Country; Foreign Subsidiary; Host Economy; Irish Case (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59304-6_6

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DOI: 10.1057/9780230593046_6

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