Accounting for Irish growth: a balance-of-payments-constraint approach
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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Volume (Year): 30 (2008)
Issue (Month): 3 (April)
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