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Convergence in Living Standards in Ireland: The Role of the New Economy


  • John FitzGerald

    (Economic and Social Research Institute (ESRI))

  • Ide Kearney

    () (Economic and Social Research Institute (ESRI))


Section 1 of this paper sets out the historical record on convergence. It decomposes the change in GDP per head into the effects of demographic changes and changes in output per person employed. Section 2 describes a small model of the economy with skilled and unskilled labour. This model is used in Section 3 to examine the roles of a range of different factors in driving convergence and in accounting for the relatively rapid increase in output per person employed. Finally, in Section 4 some conclusions are drawn on the likely growth in the capacity output of the economy in the medium term.

Suggested Citation

  • John FitzGerald & Ide Kearney, 2000. "Convergence in Living Standards in Ireland: The Role of the New Economy," Papers WP134, Economic and Social Research Institute (ESRI).
  • Handle: RePEc:esr:wpaper:wp134

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    References listed on IDEAS

    1. Barry, Frank & Bradley, John, 1997. "FDI and Trade: The Irish Host-Country Experience," Economic Journal, Royal Economic Society, vol. 107(445), pages 1798-1811, November.
    2. Ide Kearney, 1997. "Estimating the Demand for Skilled Labour, Unskilled Labour and Clerical Workers: A Dynamic Framework," Papers WP091, Economic and Social Research Institute (ESRI).
    3. George J. Borjas & Richard B. Friedman & Lawrence F. Katz, 1997. "How Much Do Immigration and Trade Affect Labor Market Outcomes?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 28(1), pages 1-90.
    4. Bradley, John & FitzGerald, John & Honohan, Patrick & Kearney, Ide, 1997. "Interpreting the Recent Irish Growth Experience," Book Chapters,in: Medium-Term Review: 1997-2003, No.6, chapter 3, pages 35-66 Economic and Social Research Institute (ESRI).
    5. Bradley, John & Fitzgerald, John, 1988. "Industrial output and factor input determination in an econometric model of a small open economy," European Economic Review, Elsevier, vol. 32(6), pages 1227-1241, July.
    6. Koman, Reinhard & Marin, Dalia, 1997. "Human Capital and Macroeconomic Growth: Austria and Germany 1960-1992," CEPR Discussion Papers 1551, C.E.P.R. Discussion Papers.
    7. Duffy, David & FitzGerald, John & Kearney, Ide & Smyth, Diarmaid, 1999. "Medium-Term Review 1999-2005, No. 7," Forecasting Report, Economic and Social Research Institute (ESRI), number MTR07.
    8. Ide Kearney, 1998. "Is There A Stable Migration Equation For Ireland?," Papers WP097, Economic and Social Research Institute (ESRI).
    9. Nickell, Stephen & Bell, Brian, 1995. "The Collapse in Demand for the Unskilled and Unemployment across the OECD," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 40-62, Spring.
    10. Duffy, David & FitzGerald, John & Kearney, Ide & Shortall, Fergal, 1997. "Medium-Term Review 1997-2003, No. 6," Forecasting Report, Economic and Social Research Institute (ESRI), number MTR06.
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    Cited by:

    1. Slevin, Geraldine, 2002. "Is There a "New Economy" in Ireland?," Research Technical Papers 3/RT/02, Central Bank of Ireland.
    2. Alan Barrett & Adele Bergin & David Duffy, 2006. "The Labour Market Characteristics and Labour Market Impacts of Immigrants in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 37(1), pages 1-26.
    3. Adele Bergin & Ide Kearney, 2004. "Human Capital, The Labour Market and Productivity Growth in Ireland," Papers WP158, Economic and Social Research Institute (ESRI).
    4. John FitzGerald, 2001. "Wage Determination in Economies in Transition: Ireland Spain and Portugal," Papers WP141, Economic and Social Research Institute (ESRI).
    5. Slevin, Geraldine, 2001. "Potential Output and the Output Gap in Ireland," Research Technical Papers 5/RT/01, Central Bank of Ireland.
    6. Franck Barry, 2013. "The Knowledge Economy, Economic Transformations and ICT: Regional Dynamics in the Deployment Phase. Case study: Southern and Eastern Ireland," JRC Working Papers JRC83549, Joint Research Centre (Seville site).
    7. Patrick Honohan & Anthony J. Leddin, 2006. "Ireland in EMU - More Shocks, Less Insulation?," The Economic and Social Review, Economic and Social Studies, vol. 37(2), pages 263-294.
    8. Conall MacCoille & Daniel McCoy, 2002. "Economic Adjustment Within EMU - Ireland’s Experience," The Economic and Social Review, Economic and Social Studies, vol. 33(2), pages 179-193.
    9. Alan Barrett & Adele Bergin, 2009. "Estimating the Impact of Immigration in Ireland," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 35, pages 1-2.
    10. Barry, Frank, 2004. "Export-platform foreign direct investment: the Irish experience," EIB Papers 6/2004, European Investment Bank, Economics Department.
    11. Patrick Honohan, 2004. "Book Review - "Preventing the Future: Why Was Ireland So Poor for So Long?" by Tom Garvin," The Economic and Social Review, Economic and Social Studies, vol. 35(3), pages 351-355.

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