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Job Generation and Regional Industrial Policy in Ireland

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Author Info

  • Aidan Meyler

    (Central Bank of Ireland)

  • Eric Strobl

    (University College Dublin)

Abstract

Irish industrial policy explicitly encouraged job generation in certain “designated” areas via, amongst other things, preferential grant treatment, job targets and the building of advance factories in the IDA’s (Industrial Development Authority) regional industrial plans of 1973-1977 and 1978-1982. To assess the impact of these regional plans, this paper compares the employment performance of the designated and the non-designated areas in Ireland since 1972 by employing the job flow methodology pioneered by Davis and Haltiwanger (1992). We find that the convergence in aggregate industrial employment levels between designated and non-designated areas observed since 1972 has been largely driven by a higher rate of job creation without an accompanying higher rate of job destruction in the designated areas. Our econometric study attributes an annual 27 per cent of the job generation in the designated areas during the relevant period to the explicit regional industrial policy.

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File URL: http://www.esr.ie/vol31_2/1Meyler&Strobl.pdf
File Function: First version, 2000
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Bibliographic Info

Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 31 (2000)
Issue (Month): 2 ()
Pages: 111-128

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Handle: RePEc:eso:journl:v:31:y:2000:i:2:p:111-128

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Web page: http://www.esr.ie

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References

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  1. Davis, Steven J & Haltiwanger, John C, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, MIT Press, vol. 107(3), pages 819-63, August.
  2. Breusch, T S & Pagan, A R, 1980. "The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 239-53, January.
  3. Aidan Meyler & Eric Strobl, 1997. "Regional Employment Performance of Irish Industry, 1972-96: A Job Flow Analysis," Economics Technical Papers 979, Trinity College Dublin, Department of Economics.
  4. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
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Cited by:
  1. Eric Strobl & Luisito Bertinelli & Salvador Barrios, . "Coagglomeration and Spillovers," Working Papers on International Economics and Finance 06-02, FEDEA.
  2. Salvador Barrios & Holger Görg & Eric Strobl, 2006. "Multinationals' Location Choice, Agglomeration Economies, and Public Incentives," International Regional Science Review, , vol. 29(1), pages 81-107, January.
  3. Kevin P. Heanue, 2008. "Measuring Industrial Agglomeration in a Rural Industry: The Case of Irish Furniture Manufacturing," Working Papers 0830, Rural Economy and Development Programme,Teagasc.
  4. Edgar Morgenroth, 2007. "The Regional Dimension of Taxes and Public Expenditure in Ireland," Papers WP195, Economic and Social Research Institute (ESRI).
  5. Eric Strobl, 2004. "Trends and Determinants of the Geographic Dispersion of Irish Manufacturing Activity, 1926- 1996," Regional Studies, Taylor & Francis Journals, vol. 38(2), pages 191-205.

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