FDI can be broken down by certain characteristics which allow for more specific analysis. A distinction is often drawn between Greenfield FDI and other types of FDI transactions (mergers & acquisitions, extension of capital and financial restructuring). The rationale behind drawing this distinction is that the transfer of ownership (merger & acquisition investment) will usually have a significantly different economic impact than the purchase or sale of new shares (greenfield investment), the extension of capital or financial restructuring.
Greenfield FDI can be described as ex nihilo investment: the establishment of a subsidiary “out of nothing”. International standards for the compilation of Greenfield FDI statistics are not yet available; these results should be considered a proxy for Greenfield FDI.1
Table 6.1 and Figure 6.1 display the number of Greenfield FDI projects in Ireland from 2012 to 2017, which have been recorded by the CSO.
Table 6.1 Number of Greenfield FDI Projects | ||||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
Number of Projects | 54 | 29 | 40 | 27 | 33 | 23 |
Greenfield Projects | |
2012 | 54 |
2013 | 29 |
2014 | 40 |
2015 | 27 |
2016 | 33 |
2017 | 23 |
In Figure 6.2 the sum of Greenfield FDI investment is shown between 2012 and 2017. There is a spike in 2015 which coincides with a significant increase in Irish FDI inward.
Sum of Greenfield Investment | |
2012 | 13.25453661793 |
2013 | 10.44359522278 |
2014 | 18.593444236 |
2015 | 26.382513277 |
2016 | 7.430572054 |
2017 | 11.38062182 |
Figure 6.3 displays the contribution which these projects have made to the overall inward FDI position in Ireland.
Sum of Greenfield Inward Investment | Non-Greenfield Inward Investment | |
2012 | 13.25453661793 | 277.18346338207 |
2013 | 10.44359522278 | 290.28940477722 |
2014 | 18.593444236 | 335.451555764 |
2015 | 26.382513277 | 791.197486723 |
2016 | 7.430572054 | 790.090427946 |
2017 | 11.38062182 | 733.00537818 |
Table 6.2 Greenfield Investment in FDI | % | |||||
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | |
% of Greenfield Investment in the FDI | 4.6 | 3.5 | 5.3 | 3.2 | 0.9 | 1.5 |
1These results were obtained by dividing FDI according to the date which it entered the CSO database.
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