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Around twenty years ago, when I was lecturing in economics at University College Dublin and specializing in the role of foreign direct investment (FDI) in the modern Irish economy, I became engrossed in historian Mary Daly’s work on industrial development in the early years of the Irish Free State. By the early 2000s, foreign-owned firms accounted for close to 50 per cent of manufacturing employment. For most of them, Ireland served as an export platform from which to produce for the European Union and other neighbouring markets. I had not considered until then the role that FDI had played in the industrial economy of earlier times. Mary Daly’s work was replete with references to British firms—and some of other nationalities—that had avoided the tariff barriers of the era by establishing in Ireland to service the protected local market.
The anonymized database currently maintained by the Department of Enterprise, Trade and Employment contains the longest time series on the nationality of ownership of Irish industry. Its coverage extends back only to 1972. It should be possible, I thought, to work out reasonably precisely how extensive this older type of FDI had been if the nationality of ownership of the largest manufacturing firms of the earlier protectionist era could be identified.
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