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The Irish Economic Boom: What Can We Learn?

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  • Pierre Fortin

Abstract

The economic success story of the 1990s has been Ireland, with GDP per capita nearly doubling over the decade. In this article Pierre Fortin from the Université du Québec à Montréal and the Canadian Institute for Advanced Research provides a detailed examination of the factors behind the Irish renaissance and discusses the lessons of this experience for other countries. He finds that Ireland has experienced a long-term productivity boom over the last 25 years and that the recent acceleration in per capita GDP reflects an acceleration in employment rate growth, not in productivity growth. The main policy lessons that Fortin draws from the Irish economic miracle are: support free trade and investment; develop business-friendly industrial and tax policies; stick to free or low-cost secondary and post-secondary education; and ensure aggregate supply can accommodate non-inflationary aggregate demand expansion.

Suggested Citation

  • Pierre Fortin, 2001. "The Irish Economic Boom: What Can We Learn?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 3, pages 19-31, Fall.
    • Handle: RePEc:sls:ipmsls:v:3:y:2001:2
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    References listed on IDEAS

    as
    1. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    2. Kevin M. Murphy & W. Craig Riddell & Paul M. Romer, 1998. "Wages, Skills, and Technology in the United States and Canada," NBER Working Papers 6638, National Bureau of Economic Research, Inc.
    3. Willem H. Buiter, 1999. "The EMU and the NAMU: What is the Case for North American Monetary Union?," Canadian Public Policy, University of Toronto Press, vol. 25(3), pages 285-305, September.
    4. George A. Akerlof & William T. Dickens & George L. Perry, 2000. "Near-Rational Wage and Price Setting and the Long-Run Phillips Curve," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 31(1), pages 1-60.
    5. Daron Acemoglu & Joshua Angrist, 1999. "How Large are the Social Returns to Education? Evidence from Compulsory Schooling Laws," NBER Working Papers 7444, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Andrew Sharpe, 2002. "Raising Canadian Living Standards: A Framework for Analysis," International Productivity Monitor, Centre for the Study of Living Standards, vol. 5, pages 23-40, Fall.
    2. David E. Bloom & David Canning, 2003. "Contraception and the Celtic Tiger," The Economic and Social Review, Economic and Social Studies, vol. 34(3), pages 229-247.
    3. Andrew Sharpe, 2007. "Lessons for Canada from International Productivity Experience," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 20-37, Spring.
    4. Centre for the Study of Living Standards, 2002. "Raising Canadian Living Standards: A Framework for Discussion," CSLS Research Reports 02td, Centre for the Study of Living Standards.

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    More about this item

    Keywords

    Ireland; Productivity; Irish; Productivity Boom; Acceleration; Employment; Irish Miracle; Free Trade; Trade; Investment; Policy; Tax Policy; Post-Secondary Education; Education; Aggregate Supply; Inflation; Demand; GDP; Living Standards; Trend; Growth; Income Growth; Investment; Competitiveness; Capital; Canada;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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