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Accounting for Irish growth: a balance-of-payments-constraint approach

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  • Carlos Garcimartín
  • Luis Alberto Rivas
  • Santiago Diaz De Sarralde
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    Abstract

    Less than 20 years ago, the Irish economy was tired and sluggish, suffering from double-digit unemployment and stagnating incomes. Today, Ireland's "Celtic tiger" economy is one of the fastest growing in the world, exceeding average EUper capita income levels and boasting a thriving technology industry and productivity levels that are among the highest in Europe. In this study, we present a continuous-time disequilibrium model to explain economic growth in Ireland. In particular, we try to identify the key factors explaining the "Irish miracle" by developing a demand-oriented growth accounting methodology based on the balance-of-payments-constraint theory.

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    Bibliographic Info

    Article provided by M.E. Sharpe, Inc. in its journal Journal of Post Keynesian Economics.

    Volume (Year): 30 (2008)
    Issue (Month): 3 (April)
    Pages: 409-433

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    Handle: RePEc:mes:postke:v:30:y:2008:i:3:p:409-433

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    Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=109348

    Related research

    Keywords: external constraint; foreign direct investment; growth accounting; Irish economy; tax policy;

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    Cited by:
    1. A. P. Thirlwall, 2011. "Balance of Payments Constrained Growth Models: History and Overview," Studies in Economics, Department of Economics, University of Kent 1111, Department of Economics, University of Kent.

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