SMEs in a Globalised World
Show Less

SMEs in a Globalised World

Survival and Growth Strategies on Europe’s Geographical Periphery

Edited by Helena Lenihan, Bernadette Andreosso-O’Callaghan and Mark Hart

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.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 7: MNE Subsidiaries, Productivity Spillovers and SMEs

Rita Buckley


Rita Buckley INTRODUCTION Prior to 1990, the Irish economy was considered to be one of the weakest peripheral economies of the ‘old’ EU15 with per capita GDP below 80 per cent of the EU average. This was combined with slow growth rate in GDP, high inflation and unemployment and a heavy debt burden. In 2007, the Irish economy was among the most vibrant, globalized economies in the EU, with GDP per capita second only to Luxembourg’s at 143 per cent of the EU average (Eurostat, 2008). The ‘Celtic Tiger’ period of the mid-tolate 1990s saw several years of double-digit GDP growth, driven by a progressive industrial policy that boosted large-scale foreign direct investment and exports. Since 2004, GDP growth has averaged around 5 per cent, the best performance for this period among the original EU15 Member States. This extraordinary growth record of the Irish economy has led to considerable interest in the Irish development model. Ireland’s economic performance since 1990 is primarily attributed to the presence of foreign-owned multinational enterprise (MNE) subsidiaries, especially in high-technology sectors. This sector is made up of a relatively small number of large foreign-owned multinational enterprises and a large number of indigenous small- to medium-sized enterprises (SMEs). A key issue here is how the indigenous SME sector has coped with the challenge of coexisting with a highly productive ‘foreign’ sector and whether this has had an impact on their overall level of growth and in particular whether it has assisted them in coping better with...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.