Ireland has always been considered a land of mystical and often magical happenings. This is also proved by Ireland’s success over the past two decades. This report has analysed how Ireland has been successful in attracting FDI into the country. The main reason for this has been the various policies adopted and also how the creation of IDA has been a boost to the country’s economy. The analysis further moves into the benefits of attracting FDI and also how the location of Ireland and has help built Ireland into what it is today. This analysis leads us into the notion of Ireland as “THE CELTIC TIGER”, how this notion has come through and what initiatives have the government taken to living to this notion. The notion of Ireland as “The Celtic Tiger” is used to refer to the time period (The Celtic Tiger years) and also the country. This notion was given to signify the rapid economic growth. This report then analyses the challenges which might be faced by the government, like loss of competitiveness, promoting indigenous industry etc. And then we move into analysing the position of Ireland in the European Union. Being a part of the European Union was one of the major turning points in Ireland’s economic growth. Finally we conclude by saying 1) that Ireland’s ability to attract foreign direct investment (FDI) was one of the defining features of the country’s economic success over the 1990s 2) timely tax breaks have created various employment opportunities 3) But the economy has overlooked or neglected some of the factors. So from the conclusion we recommend that Ireland should continuously improve the infrastructure, build up a favourable environment for entrepreneurship, increase the mobility of students and more importantly improve the R&D capabilities apart from others. This will help Ireland cope up with any future challenges.
TABLE OF CONTENT
BIRTH OF CELTIC TIGER8
IRELAND IN EUROPEAN UNION12
Leprechauns, sentimental poets, the little people, Guinness, empty countryside, Five Nations Rugby and traffic free lanes, where you are more likely to encounter a herd of cows rather than a queue of cars. Welcome to the Emerald Island or the country we all know as IRELAND. It is a country steeped in myths and legends that live in harmony besides the today’s modern day world. Most travellers describe Ireland as a stunning land with unsurpassed beauty and one which possesses a history that goes so far only the fairy folk remember it beginnings. These clichéd images of Ireland sell Ireland well short of its reality. In just over a decade Ireland has emerged from one the poorest countries in the Western Europe to one of the most successful (Sean, 2006). A number of key factors underpin this key economic growth. These factors include reducing the taxes, government programs to attract foreign direct investments (FDI) and the financial support from the European Union. As a result of continuous efforts over many years, Ireland now has second highest gross domestic product (GDP) per capita within the European Union one third than EU-25 average and has achieved exceptional growth (Sean, 2006). All these changes have taken the Irish society to a new level. This case study analyses the Ireland’s success in attracting foreign direct investment (FDI), this was one the major reasons for Ireland’s success. This analysis will lead us into analysing the notion of Ireland as a “Celtic Tiger” and finally considering the Ireland’s position in the European Union.
CASE STUDY ANALYSIS
From 1800 to 1921, Ireland was a central part of the United Kingdom. During the period 1846-48, the Irish economy was overshadowed by a severe economic depression. Mass famine produced the first wave of Irish emigration to the United States. The turn of the century witnessed a...