We study the regional location decision of multinationals in Ireland since the 1970s by focusing on the role played by agglomeration economies and by a distinct change in regional policy intent on dispersing industrial activity to the more disadvantaged areas of Ireland. We find that regional...

This paper analyses the impact of foreign direct investment (FDI) on the development of local firms. We focus on two likely of FDI: a competition effect which deters entry of domestic firms and positive market externalities which foster the development of local industry. Using a simple...