Bernadette Andreosso-O’Callaghan

Knowledge Transfers from Multinational Plants in Ireland A Cross-Border Comparison of Supply-Chain Linkages

For regions or nations which historically have had low levels of domestic R&D investment - such as Ireland, North and South - inward investment represents a potentially important source of inward knowledge transfer. Using data from large multinational plants throughout Ireland, this paper examines the geography of knowledge within Irish manufacturing, focusing particularly on knowledge gaps and knowledge-transfer activity. The analysis suggests three main empirical results. First, no significant knowledge gaps exist between the Irish plants of multinational enterprises (MNEs) and international best practice. Second, larger knowledge gaps exist between MNE plants and their best local suppliers, suggesting the potential for local learning in the supply chain. Average knowledge gaps to suppliers also tend to be larger in the North. Third, there is no clear evidence that knowledge-transfer activity is more intensive where knowledge gaps are widest. In particular, developmental interaction between MNE plants and suppliers tends to be more common in the South. Our results suggest the potential benefit of policy measures both to increase knowledge-transfer activity along the supply chain and also to increase knowledge-transfer activity between companies which are not trading partners.

Agricultural Trade Liberalization

As was seen in the previous chapter, agriculture is still of particular significance to the EU, as it is the major importer and the second largest exporter of food products in the world. Consequently, the EU is a very prominent and vocal member of what is today known as the World Trade Organization (WTO). Successful rounds of multilateral trade negotiations in the past have led to a decrease in the level of protection facing developing as well as developed countries. The situation of the agricultural sector, where protection in the developed countries grew enormously in relative terms until the mid-1980s, is generally in contrast with a background of falling tariffs experienced in the manu-facturing sector. Indeed, average tariff levels on manufacturing products have decreased from 40 to 50 per cent of the import value in 1950 to an average of 3.9 per cent in the 1990s. Thanks to the last round of multi-lateral negotiations, the Uruguay Round (UR), average tariffs on fish products declined by more than a quarter (Senti and Conlan, 1998).

EXPLAINING THE EU-ASEAN INTRA-INDUSTRY TRADE THROUGH JAPANESE FOREIGN DIRECT INVESTMENT: The case of high-tech industries

Although the reasons why firms choose to invest in the worlds different geographical regions are by now well documented, what is less known is the nature and extent of the interdependency of trade between, on the one hand, subsidiaries of firms located in the same geographical region and, on the other, trade between these subsidiaries and those located in other geographical regions. This study analyses the role Japanese foreign direct investment (FDI) plays in enhancing intra-industry and interregional trade and finds support for the thesis that it is of significance.

SMEs in a Globalised World

This insightful book shows how small and medium enterprises (SMEs) from some of the traditionally less dynamic peripheral economies of the ‘old’ EU – namely Ireland, Italy, Portugal and Spain – have responded to the twin challenges of globalisation and industrial restructuring. Through a series of unique case studies the contributing authors discuss how these economies, and in particular the SME sector, can be transformed.

Japanese Direct Investment in Asia and the European Union: Is There an Interdependence?

The 1997–8 Asian financial crisis indicates the growing interdependence existing between EU and Asian economies. Excessive reliance upon international capital flows is currently seen as one of the main explanatory factors of this turmoil, combined with an inappropriate allocation of domestic resources and the many distortions induced by market-unfriendly policies. The rapid depreciation of most Asian currencies against both the US dollar and major European currencies may enhance the comparative advantage of these countries. However, the collapse of domestic demand in the ASEAN countries has induced a cautious attitude on the part of foreign investors, who had to postpone or cancel several projects. In addition, they had to reconsider or even to change drastically their strategy aimed at implementing — within their business group — an international division of labor, and therefore international trade flows between their subsidiaries.

The evolving model of capitalism in Ireland: An insight into enterprise development and policy

Contemporary capitalism in Ireland took off in the late 1950s and affirmed itself as an inward investment-focused model of development. With enterprise development at the core of the policy (as a way of developing the economy and society and ending emigration), all other policy domains – financial, governance, industrial relations, welfare and education – became subservient to the ‘industrialization-by-invitation’ strategy. This article examines and characterizes the Irish model of development, using the lens of the varieties of capitalism literature (VoC) as a starting point. The article also examines whether a stage theory of capitalism perspective can capture changes which the VoC perspective might obscure. The collapse of the Irish banking system since 2008 and the subsequent recession raises major challenges for Ireland’s variety of capitalism and may represent a critical juncture.

Government Intervention in Agriculture

This chapter is intended at: Presenting the economic rationale for government intervention in agriculture. Analyzing the main economic policies affecting the agricultural sector. Presenting a brief historical review of government involvement in agriculture in a selected number of EU countries prior to the implementation of the Common Agricultural Policy (CAP).

Hong Kong Unrest and Implications for the Hang Seng Index

Abstract With the September 2014 ‘Umbrella Revolution’ in Hong Kong, China faced one of the biggest political challenges since the Tiananmen Square events. Beijing’s proposed electoral reform was perceived as a direct attack to democracy, and the ensuing protest triggered concerns amid local and international investors; the financial sector took the hardest hit, with stocks of companies exposed to the Hong Kong market facing significant losses. Volatility continued to increase to a seven-month high over worries that the student blockade in Hong Kong’s streets could drag on for longer than expected. The econometric-based analysis in this paper looks at the implications of the protest and its spillover effect on the Hang Seng Index with a focus on sectoral performance. The ultimate objective is to gain a better understanding of the impact of the protests on different stocks and sectors with the goal of identifying market vulnerability and potential volatility patterns.

Lessons from the global financial crisis – the case of Mainland China and Hong Kong

Abstract The analysis of the intertwined reactions of Hong Kong and Mainland China to the 2008 Global Financial Crisis is considered in this study through the lenses of their stock markets. The GARCH-based analysis of stock market performance over the period December 2011–December 2014 shows that trade and equity sectors were the sectors most affected by the global recession; volatility was prevalent on the Shanghai stock market, whereas volatility persistence characterised the Hong Kong stock market. The results also show that the two stock markets recovered quite quickly. Tight controls applied by the financial authorities helped ensure some stability during the crisis.

Economic Integration in Asia

The present introductory chapter discusses what makes economic integration sustainable and what are the prerequisites for sustainable economic integration. A financial safety net is without any doubts an important prerequisite, as it would allow crisis-stricken European Union (EU) countries to rely on financial resources for recovery. Other prerequisites are the more even distribution of the gains arising from high growth rates, in particular of wages, and the introduction of clean energy and innovation. Other aspects analyzed include: the focus on food security and investment in land; the transfer of human resources and the impact of non-tariff barriers between the EU and Asian countries.