Görg, Holger; Hanley, Aoife; Strobl, Eric - Institut für Weltwirtschaft (IfW) - 2009
We investigate whether government subsidies to local input manufacturers encourage procurement from foreign firms. We use a comprehensive panel data of Irish firms from 1983 until 2002. Our data shows a spontaneity about linkages and relative insensitivity to grant aid, although it may be the...