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South-North Trade in Ireland: Gravity and Firms from the Good Friday Agreement to Brexit

Author

Listed:
  • Martina Lawless

    (The Economic and Social Research Institute)

  • J. Peter Neary

    (University of Oxford, CEPR and CESifo)

  • Zuzanna Studnicka

    (University College Dublin)

Abstract

This paper revisits the work of Fitzsimons et al. (1999) on the level of trade between Ireland and Northern Ireland. In doing so, we reflect on the recent move to prominence of this issue since the referendum decision of the UK to leave the EU and also on the shift within the economics literature to looking at trade issues from a micro rather than a macro perspective as data availability has grown. Our country-level results show the same pattern of limited statistical significance for a border effect as was found in the earlier work still holds, but when using firm-level data we find a positive and significant border effect. This effect holds for total trade at firm and product level with the primary determinant coming from the intensive margin, both in terms of average exports per firm and average exports per product within firms.

Suggested Citation

  • Martina Lawless & J. Peter Neary & Zuzanna Studnicka, 2019. "South-North Trade in Ireland: Gravity and Firms from the Good Friday Agreement to Brexit," The Economic and Social Review, Economic and Social Studies, vol. 50(4), pages 751-766.
    • Handle: RePEc:eso:journl:v:50:y:2019:i:4:p:751-766
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    References listed on IDEAS

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    Cited by:

    1. Cormac Ó Gráda & Kevin Hjortshøj O'Rourke, 2022. "The Irish economy during the century after partition," Economic History Review, Economic History Society, vol. 75(2), pages 336-370, May.
    2. Rodolfo G. Campos & Benedikt Heid & Jacopo Timini, 2024. "The Economic Consequences of Geopolitical Fragmentation: Evidence from the Cold War," CESifo Working Paper Series 11057, CESifo.
    3. Fernihough, Alan, 2024. "Economic Geography and the Irish Border: A Market Access Approach," QBS Working Paper Series 2024/02, Queen's University Belfast, Queen's Business School.

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    More about this item

    Keywords

    cross-border trade; Ireland; Brexit;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General

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