Foreign Direct Investment and Ireland's Tiger Economy (B)

Laura  Alfaro; Matthew  Johnson

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Supplement | HBS Case Collection | March 2010 (Revised May 2013)

Foreign Direct Investment and Ireland's Tiger Economy (B)

by Laura Alfaro and Matthew Johnson

Keywords: Foreign Direct Investment; Northern Ireland;

Language: English

Format: Print

10 pages

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Citation:

Alfaro, Laura, and Matthew Johnson. "Foreign Direct Investment and Ireland's Tiger Economy (B)." Harvard Business School Supplement 710-057, March 2010. (Revised May 2013.)

About the Author

Laura Alfaro

Warren Alpert Professor of Business Administration

General Management

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Case | HBS Case Collection | June 2018 (Revised August 2019)

Renegotiating NAFTA

Laura Alfaro, Haviland Sheldahl-Thomason and Sarah Jeong

January 1, 2019 marked the 25th anniversary of the North American Free Trade Agreement (NAFTA). Twenty-five years after the landmark trade pact was signed by the United States, Canada, and Mexico, considerable debate surrounded it. Trade and trade agreements were a focal point of the 2016 U.S. presidential election. NAFTA came into effect on January 1, 1994, after being backed by the Republican administration of U.S. President George H. W. Bush and the Democratic administration of U.S. President Bill Clinton during its implementation. It created the largest free trade area in the world at the time. Since implementation, total trade between NAFTA countries grew 280%; in comparison while trade to non-NAFTA partners grew by 195%. Critics of NAFTA claimed that it had contributed to a loss of manufacturing jobs to Mexico, increased inequality in all countries, and undercut environmental laws. Those who supported NAFTA, however, noted that in addition to trade, output, and overall employment, investment among the three nations increased, and productivity also grew. Furthermore, the agreement led to lower prices. By 2018, all countries experienced low unemployment rates. With changes in NAFTA looming, many questioned whether the accord had brought more benefits than costs to its signatories. Could the costs be minimized under a new agreement without reducing the benefits? Did buying local goods help create the most jobs in a country? What was the role of business? Everyone wondered what the potential ramifications of the new NAFTA, or lack of, would be.

Keywords: Trade; Negotiation; Agreements and Arrangements; Cost vs Benefits;

Citation:
Alfaro, Laura, Haviland Sheldahl-Thomason, and Sarah Jeong. "Renegotiating NAFTA." Harvard Business School Case 318-143, June 2018. (Revised August 2019.) View Details

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Working Paper | HBS Working Paper Series | 2019

Spatial Agglomeration and Superstar Firms: Firm-level Patterns from Europe and U.S.

Laura Alfaro, Maggie X. Chen and Harald Fadinger

We characterize the agglomeration patterns of industries and plants in Europe, distinguishing Eurozone countries and the United States. Using a micro-level index, we quantify the degree of geographic concentration in industrial activities and explore how firm heterogeneity, industry attributes, and location fundamentals jointly explain the observed patterns. Our analysis shows that there is a clear hub-and-spoke structure in the geographic distribution. Larger and more productive plants, especially the superstars of each industry, are more centered than their smaller, less productive counterparts. The greater agglomeration surrounding superstars is particularly pronounced in the Eurozone but not present in the rest of Europe. Location fundamentals also play an important role and can sometimes mitigate the importance of agglomeration economies around large firms. Regions with different levels of economic development, including in education and technology, exhibit distinct agglomeration patterns. The findings suggest heterogeneity in the ability of regional policies to build superstar-centered industry clusters.

Keywords: agglomeration; patterns; Economics; Industry Clusters; Europe; United States;

Citation:
Alfaro, Laura, Maggie X. Chen, and Harald Fadinger. "Spatial Agglomeration and Superstar Firms: Firm-level Patterns from Europe and U.S." Harvard Business School Working Paper, No. 20-015, August 2019. View Details

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Other Unpublished Work | 2019

Mexico's Financial Risks: Solving Pemex for a Solvent Mexico

Laura Alfaro

Keywords: financial risk; Finance; Economics; Mexico; Latin America;

Citation:
Alfaro, Laura. "Mexico's Financial Risks: Solving Pemex for a Solvent Mexico." Comité Latinoamericano de Asuntos Financieros (CLAAF) Statement, no. 41, Washington, DC, July 2019. View Details

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Foreign Direct Investment and Ireland's Tiger Economy (B)

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