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Committing to Economic Openness and Building Domestic Institutional Capabilities Keywords: Ireland, economic growth, economic development, inward investment, economic systems Creation-Date: 2009

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  • Teague, Paul
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    Abstract

    This paper sets out to explain the factors behind Ireland.s exceptional period of economic growth from the early 1990s to the mid 2000s. It suggests that an unbending commitment to economic openness and an on-going effort to establish quality domestic institutions were the main drivers of the so-called .Celtic tiger. phenomenon. The commitment to economic openness manifested itself in the relentless search for inward investment and a willingness to accept deep forms of European integration. Building domestic institutional capabilities involved adopting new-classical macroeconomic policies, creating a robust system of social partnership and reforming the educational system. The two factors positively interacted with each other to create dynamic effects.

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    File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2009/RP2009-24.pdf
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    Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper RP2009/24.

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    Length: 16
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    Handle: RePEc:unu:wpaper:rp2009-24

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    1. Patrick Honohan & Brendan Walsh, 2002. "Catching Up with the Leaders: The Irish Hare," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 33(1), pages 1-78.
    2. S. Illeris & G. Akehurst, 2001. "Introduction," The Service Industries Journal, Taylor & Francis Journals, vol. 21(1), pages 1-4, January.
    3. Rodrik, Dani, 2008. "Second-Best Institutions," CEPR Discussion Papers 6764, C.E.P.R. Discussion Papers.
    4. Alan B. Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," NBER Working Papers 7591, National Bureau of Economic Research, Inc.
    5. Peter J. Buckley & Frances Ruane, 2006. "Foreign Direct Investment in Ireland: Policy Implications for Emerging Economies," The World Economy, Wiley Blackwell, vol. 29(11), pages 1611-1628, November.
    6. John FitzGerald, 2004. "Lessons from 20 years of Cohesion," Papers WP159, Economic and Social Research Institute (ESRI).
    7. John FitzGerald, 1998. "An Irish Perspective on the Structural Funds," Papers WP094, Economic and Social Research Institute (ESRI).
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