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The importance of structural change in industry for growth

Author

Listed:
  • Ciara Whelan
  • Patrick P. Walsh

Abstract

The paper documents ongoing job creation and job destruction within 3- digit Irish manufacturing sectors over the period 1973 to 1994. Within sectors of low-technology manufacturing, this was due to the gradual development of historical export product lines and gradual decline in historical domestic oriented production. In contrast, the structural change in jobs within sectors of hightechnology manufacturing resulted from the gradual accumulation of foreign capital with new export product lines and a phasing out of inefficient import substituting industry. Ireland’s industrial performance is shown to be an outcome of such path dependent structural change.

Suggested Citation

  • Ciara Whelan & Patrick P. Walsh, 2000. "The importance of structural change in industry for growth," Open Access publications 10197/134, School of Economics, University College Dublin.
  • Handle: RePEc:ucn:oapubs:10197/134
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    File URL: http://hdl.handle.net/10197/134
    File Function: Open Access version, 2000
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    References listed on IDEAS

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    1. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    2. Aghion, Philippe & Blanchard, Olivier & Burgess, Robin, 1994. "The behaviour of state firms in eastern Europe, pre-privatisation," European Economic Review, Elsevier, vol. 38(6), pages 1327-1349, June.
    3. Patrick Paul Walsh, 2000. "Sunk Costs and the Growth and Failure of Small Business," Trinity Economics Papers 20002, Trinity College Dublin, Department of Economics.
    4. Dani Rodrik, 1994. "Foreign Trade in Eastern Europe's Transition: Early Results," NBER Chapters, in: The Transition in Eastern Europe, Volume 2, Restructuring, pages 319-356, National Bureau of Economic Research, Inc.
    5. Steven J. Davis & John Haltiwanger, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, Oxford University Press, vol. 107(3), pages 819-863.
    6. McAleese, D., 1971. "Effective Tariffs and the Structure of Industrial Protection in Ireland," Research Series, Economic and Social Research Institute (ESRI), number GRS62, January.
    7. Repkine, Alexandre & Walsh, Patrick Paul, 1999. "Evidence of European Trade and Investment U-Shaping Industrial Output in Bulgaria, Hungary, Poland, and Romania," Journal of Comparative Economics, Elsevier, vol. 27(4), pages 730-752, December.
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    Citations

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    Cited by:

    1. Patrick Paul Walsh, 2000. "Sunk Costs and the Growth and Failure of Small Business," Trinity Economics Papers 20002, Trinity College Dublin, Department of Economics.
    2. Martina Lawless & Alan P. Murphy, 2008. "Job Turnover in Irish Manufacturing 1972–2006," The Economic and Social Review, Economic and Social Studies, vol. 39(3), pages 235-256.
    3. Holger Görg & Eric Strobl, 2016. "Multinational Companies, Technology Spillovers and Plant Survival," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT, chapter 16, pages 289-303, World Scientific Publishing Co. Pte. Ltd..
    4. repec:ucn:wpaper:10197/142 is not listed on IDEAS
    5. Pasquale Tridico, 2015. "The Rise Of Income Inequality In Oecd Countries," Departmental Working Papers of Economics - University 'Roma Tre' 0201, Department of Economics - University Roma Tre.
    6. Oi Li & Patrick Paul Walsh & Ciara Whelan, 2007. "Building Export Capabilities by promoting Inter-Firm Linkages: Ireland’s Industrial Policy Revisited," Working Papers 200740, Geary Institute, University College Dublin.
    7. Li, Qi & Walsh, Patrick Paul & Whelan, Ciara, 2007. "Jobless Growth through Creative Destruction: Ireland’s Industrial Development Path 1972–2003," IZA Discussion Papers 3211, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Manufacturing; Intra-sector structural change; Trade liberalisation; Manufacturing industries--Ireland; Labor market--Ireland;

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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