Ireland as Productivity Bridge between the US and the EU

Ireland has been particularly successful in attracting European-bound US FDI inflows. Most of the literature on host-country effects of FDI concentrates on the effects generated within the economy in which the FDI is located. The present paper considers an aspect that is studied less frequently, exploring possible benefits accruing to the rest of Europe from Ireland’s success in attracting US FDI. A range of relevant issues are discussed. These include possible spillover benefits to the rest of Europe, the issue of tax competition versus tax complementarity, and Ireland’s contribution to regime competition within Europe