External effects of foreign direct investment

The theoretical literature about the potentially positive spillovers arising from foreign direct investment underlines the existence of diverse channels through which local enterprises can benefit from the presence of foreign affiliates, contributing so to a higher economic growth. In this work it is put in doubt the existence of them for the Irish case by a convergence analysis of productivity, wages and exports, between Irish manufacturers and their foreign counterparts; and this instead of the indisputable performance of this country in terms of economic growth and foreign investment attraction capacity.