Moving Up the Value Chain: A Good Approach for Ireland?

Abstract

Ireland has experienced rapid economic growth in the last 15 years, in part because of its successful effort to attract foreign direct investment (FDI). The government agency responsible for this effort, originally called the Industrial Development Authority (IDA), has been restructured and is now divided into three organizations: Forfás (charged with coordinating Ireland's economic development strategy); IDA Ireland (responsible for investment promotion); and Enterprise Ireland (charged with promoting the development of indigenous industry). Now that Ireland has reached full employment and salaries and other operating costs have risen, the country is no longer competitive as a low-cost investment location in Europe for manufacturing and service industries. As a result, Forfás must decide how to deal with this situation.

Teaching

This case can be used in a number of contexts. It would be appropriate to use in any course dealing with different perspectives on foreign direct investment (FDI). In this context, it can be used to demonstrate to international managers how the regulatory environment for FDI might be affected by government development efforts. The case would also be useful in a course on international development. In this context, it could demonstrate how development agencies can use FDI in order to promote economic development.

Case number:

A03-04-0018

Case Series Author(s):

Roy C. Nelson

Subject:

Business

Government

International Policy

Year:

2004

Setting:

Ireland

Length:

12 pages

Source:

Private/Field

Moving Up the Value Chain: A Good Approach for Ireland?

Degrees

Executive Education

Lifelong Learning

Employers and Partners

Alumni