Supporting domestically owned firms would lead to benefits from stabilising the tax base to raising living standards, though multinationals ‘remains a tremendous positive’
Output per worker in sectors dominated by foreign-owned firms has grown by 11.7pc since 2011. Photo: Getty
Narrowing the productivity gap between Irish-owned businesses and multinationals would reduce the economic risks Ireland faces, according to a new report by the ESRI.
It identifies a “heavy reliance” on multinationals for jobs and tax revenue, in a climate of global uncertainty, as a vulnerability for the Irish economy. “Strategies to mitigate that risk should centre around developing and supporting the contribution of domestically owned firms to the economy,” the think tank said.
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