An Analysis of Backward Linkages in the Irish Electronics Sector

Abstract

This paper analyses the development and the determinants of backward linkages between electronics firms and domestic sub-suppliers in Ireland using data for 1982 to 1995. We find that, even when controlling for other firm and sector specific factors, foreign firms have lower linkages than Irish firms. Our results also suggest both foreign and indigenous firms have increased their material linkages over time, which points to the success of Ireland’s industrial policy of developing electronics clusters. Furthermore, we find that there are differences in the determinants of linkages between foreign and indigenous firms, and that these differ as between service and material linkages.