The Director of the Economic and Social Research Institute has played down the prospect of multinational firms leaving Ireland in the wake of the election of Donald Trump as the next president of the United States.

Speaking on RTÉ’s Morning Ireland, Professor Alan Barrett said foreign companies have been "locked in here" through investments, and were the US to reduce its corporation tax rate, it would be unlikely to trigger major movements of firms.

During the election campaign, Mr Trump indicated that he intended to cut the US corporation tax rate from 35% to 15%. At present the Irish corporation tax rate is 12.5%.

Prof Barrett said that there is a difference between a company "on paper" moving from Ireland and the actual jobs moving.

He said he did not want to seem complacent, but the ESRI should not be alarmist either.

He said were President-elect Trump to follow a protectionist line it could lead to more companies locating in other countries around the world to avoid trade tariffs.

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A former head of the IDA has meanwhile said it is a misreading that tax is the main reason that American companies come here and he does not envisage them fleeing back to the US.

Speaking on RTE's News at One, Padraic White said American companies carve out large chunks of the market in Europe, Middle East and Africa by having a base in Ireland.

Ireland also boasts key skills, a support system and a hugely successful track record, he added.

Mr White said Donald Trump as a campaigner repeatedly referred to the migration of jobs into low cost countries like China and Mexico and talked about bringing them back.

"But Ireland is not a low cost country; it is high skilled."

Prof Barrett added that there has always been fiscal conservatism in the Republican Party, which did not want to see the fiscal deficit ballooning, so it would be very difficult to see Mr Trump getting tax cuts through congress while implementing major spending plans.

He also said that from an Irish context "we all understand from recent experience that when politicians talk about slashing taxes on the one hand and raising spending dramatically on the other that something has to give".

Yesterday, one of Mr Trump's senior advisers said US companies would leave Ireland in order to take advantage of the businessman-turned-politician's new corporate tax regime.

Trump: Big decisions on his administration coming 'soon'

Meanwhile, Mr Trump has said that he would use the Veterans Day holiday to focus on the imposing task of forming a new administration, saying he will soon be making "very important" decisions about who will help him govern.

There are reports that he intends to appoint JPMorgan Chase & Co CEO Jamie Dimon as his Treasury Secretary. Former House speaker Newt Gingrich was being discussed as Mr Trump's potential White House chief of staff. 

The US President-elect posted on Twitter "Busy day planed in New York," regarding his transition process, which has been cranking up full speed since he won the presidency on Tuesday. 

He said: "Will soon be making some very important decisions on the people who will be running our government!"

Mr Trump has about 70 days to put together a 15-member cabinet, before his inauguration Day on 17 January. 

Read: VP-elect Pence to head Trump transition team