Friday, 18 March 2011: 10:20
This paper investigates the impact of FDI on the growth process of a host country. The channel through which impact is taking place, is the assumption of enhancement of competiveness of indigent firms in the presence of foreign firms. Ireland is chosen as it is the most apparent example of FDI hosting country. We depart from conventional research as we treat services as a sector with different characteristics than the manufacturing sector. Using a panel data analysis, we examine both the manufacturing and the services sector of ireland for the priod 2000-2008. The results are quite interesting, giving rise to implementation of new policy measures for FDI from host countries.