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Irish GDP Growth in 2015: A Puzzle and Propositions for a Solution

Author

Listed:
  • Marie-Baïanne Khder
  • Jérémi Montornès
  • Nicolas Ragache

Abstract

[eng] In July 2016, the Irish statistical institute significantly revised GDP annual growth in 2015 from 7% to 26%. This revision does not correspond to a similar increase in employment nor in the accumulation of new physical capital, but to the relocation of preexisting intangible assets by multinationals to Ireland. This article provides a comprehensive depiction of the effects of these relocations on the Irish GDP and balance of payments in 2015. We question the need to change the accounting standards defining the macroeconomic aggregates and the framework for economic analysis. We conclude that an effort to adapt and revamp the standards of national accounts is thus necessary to achieve a consistent recording of multinationals' transactions, crucially by clarifying the concept of economic ownership over production and intellectual property and then by facilitating its implementation.

Suggested Citation

  • Marie-Baïanne Khder & Jérémi Montornès & Nicolas Ragache, 2020. "Irish GDP Growth in 2015: A Puzzle and Propositions for a Solution," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 173-190.
    • Handle: RePEc:nse:ecosta:ecostat_2020_517t_11
    DOI: https://doi.org/10.24187/ecostat.2020.517t.2026
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    References listed on IDEAS

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    1. Niamh Holton & Margaret Kinsella & Oisín Mangan & Shaun McLaughlin & Patrick Quill, 2020. "Consistency in a Globalised Economy: Aligning the Treatment of R&D in the Irish National Accounts and Balance of Payments," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 191-204.

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    More about this item

    JEL classification:

    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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