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Jobless Growth through Creative Destruction: Ireland’s Industrial Development Path 1972–2003

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  • Li, Qi

    ()
    (University College Dublin)

  • Walsh, Patrick Paul

    ()
    (University College Dublin)

  • Whelan, Ciara

    ()
    (University College Dublin)

Abstract

We document the nature of structural changes in employment to understand “jobless” growth in Irish Manufacturing in the aftermath of EEC/EU membership, 1972-2003. By 1972, forty years of protectionism and fifteen years of export promotion induced the coexistence of large exporting plants with import competing plants within 4-digit industries. During trade liberalisation we document persistent horizontal waves of creative destruction, a decline in traditional import competing plants and an expansion in exporting plants, within each sector. This coexisted with rapid vertical waves of creative destruction in small non-exporting plants which supported exporting growth through forward vertical linkages within each sector.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3211.

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Length: 50 pages
Date of creation: Dec 2007
Date of revision:
Handle: RePEc:iza:izadps:dp3211

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Keywords: manufacturing employment; structural change; trade liberalisation;

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References

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  1. Audretsch, David B & Mahmood, Talat, 1995. "New Firm Survival: New Results Using a Hazard Function," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 97-103, February.
  2. Andrew B Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2000. "Plants and productivity in international trade," Working Papers 00-08, Center for Economic Studies, U.S. Census Bureau.
  3. Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
  4. Ericson, Richard & Pakes, Ariel, 1995. "Markov-Perfect Industry Dynamics: A Framework for Empirical Work," Review of Economic Studies, Wiley Blackwell, vol. 62(1), pages 53-82, January.
  5. Baldwin,John R. & Gorecki,Paul With contributions by-Name:Caves,Richard E., 1995. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521465618, April.
  6. Baldwin, John R. & Raffiquzzaman, Mohammed, 1995. "Selection Versus Evolutionary Adaptation: Learning and Post-entry Performance," Analytical Studies Branch Research Paper Series 1994072e, Statistics Canada, Analytical Studies Branch.
  7. Andrew B. Bernard & J. Bradford Jensen, 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," NBER Working Papers 6272, National Bureau of Economic Research, Inc.
  8. Guimaraes, Paulo & Mata, José & Portugal, Pedro, 1995. "The Survival of New Plants: Start-up Conditions and Post-entry Evolution," CEPR Discussion Papers 1203, C.E.P.R. Discussion Papers.
  9. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  10. Lall, Sanjaya, 1980. "Vertical Inter-Firm Linkages in LDCs: An Empirical Study," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 42(3), pages 203-26, August.
  11. McAleese, D., 1971. "Effective Tariffs and the Structure of Industrial Protection in Ireland," Research Series, Economic and Social Research Institute (ESRI), number GRS62.
  12. Bronwyn H. Hall, 1986. "The Relationship Between Firm Size and Firm Growth in the U.S. Manufacturing Sector," NBER Working Papers 1965, National Bureau of Economic Research, Inc.
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Cited by:
  1. Qi Li & Patrick Paul Walsh, 2009. "The Firm Size Distribution in a Small Open Economy: Theory and Evidence," Working Papers 200920, Geary Institute, University College Dublin.

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