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How Competitive is Irish Manufacturing?

  • Valerie Cerra

    (International Monetary Fund)

  • Jarkko Soikkeli

    (International Monetary Fund)

  • Sweta C. Saxena

    (University of Pittsburgh)

Ireland experienced significant competitiveness gains in the 1990s on the basis of the standard manufacturing unit labour cost-based measure of the real effective exchange rate. A few sectors mostly dominated by multinational companies have accounted for the bulk of value added in production. Their productivity gains have greatly contributed to Ireland’s exceptional growth performance in the 1990s, which has earned it the nickname of “Celtic Tiger.” However, these sectors represent a disproportionately smaller share of manufacturing employment, and competitiveness in employment-intensive sectors has been much weaker. This paper thus explores Irish competitiveness from the viewpoint of risks to employment.

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

Volume (Year): 34 (2003)
Issue (Month): 2 ()
Pages: 173-193

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Handle: RePEc:eso:journl:v:34:y:2003:i:2:p:173-193
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  1. Frank Barry, 1996. "Peripherality in Economic Geography and Modern Growth Theory: Evidence from Ireland's Adjustment to Free Trade," The World Economy, Wiley Blackwell, vol. 19(3), pages 345-365, 05.
  2. Carlin, Wendy & Glyn, Andrew & Van Reenen, John, 2001. "Export Market Performance of OECD Countries: An Empirical Examination of the Role of Cost Competitiveness," Economic Journal, Royal Economic Society, vol. 111(468), pages 128-62, January.
  3. Jan Fagerberg, 1988. "International Competitiveness," Working Papers Archives 1988001, Centre for Technology, Innovation and Culture, University of Oslo.
  4. Walsh, Brendan, 1996. "Stabilization and Adjustment in a Small Open Economy: Ireland, 1979-95," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 74-86, Autumn.
  5. Walsh, Brendan, 2000. "Cyclical and Structural Influences on Irish Unemployment," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 119-45, January.
  6. Patrick Gunnigle & David McGuire, 2001. "Why Ireland? A Qualitative Review of the Factors Influencing the Location of US Multinationals in Ireland with Particular Reference to the Impact of Labour Issues," The Economic and Social Review, Economic and Social Studies, vol. 32(1), pages 43-67.
  7. Martine Durand & Jacques Simon & Colin Webb, 1992. "OECD's Indicators of International Trade and Competitiveness," OECD Economics Department Working Papers 120, OECD Publishing.
  8. Ian W. Marsh & Stephen Tokarick, 1994. "Competitiveness Indicators; A Theoretical and Empirical Assessment," IMF Working Papers 94/29, International Monetary Fund.
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