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Spillovers to Ireland

Author

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  • Daniel S Kanda

Abstract

This paper discusses Ireland's trade and financial linkages with key partner countries, and uses a vector autoregression to examine the impact of shocks to partner country GDP and shocks to Irish competitiveness on Irish GDP. Two main findings are that shocks to U.S. GDP have a larger impact on Irish GDP than shocks to the euro area or the U.K. Also, the share of the variance of Irish GDP explained by shocks to competitiveness rises with the forecast horizon, suggesting that past erosion of competitiveness may yet have a more substantial impact on economic activity.

Suggested Citation

  • Daniel S Kanda, 2008. "Spillovers to Ireland," IMF Working Papers 08/2, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:08/2
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    References listed on IDEAS

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    1. Baxter, Marianne & Kouparitsas, Michael A., 2005. "Determinants of business cycle comovement: a robust analysis," Journal of Monetary Economics, Elsevier, vol. 52(1), pages 113-157, January.
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    6. International Monetary Fund, 2006. "Ireland; Financial System Stability Assessment Update," IMF Staff Country Reports 06/292, International Monetary Fund.
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    Cited by:

    1. Mwanza Nkusu, 2013. "Boosting Competitiveness to Grow Out of Debt; Can Ireland Find a Way Back to Its Future?," IMF Working Papers 13/35, International Monetary Fund.

    More about this item

    Keywords

    External shocks; Spillovers; Ireland; Trade; Vector autoregression; reer; trading partners; partner country; real effective exchange rate; partner countries;

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