Working Paper: CEPR ID: DP15991
Authors: Cormac Grada; Kevin O'Rourke
Abstract: We provide a centennial overview of the Irish economy in the one hundred years following partition and independence. A comparative perspective allows us to distinguish between those aspects of Irish policies and performance that were unique to the country, and those which mirrored developments elsewhere. While Irish performance was typical in the long run, the country under-performed prior to the mid-1980s and over- performed for the rest of the twentieth century. Real growth after 2000 was slow. The mainly chronological narrative highlights the roles of convergence forces, trade and industrial policy, and monetary and fiscal policy. While the focus is mostly on the south of the island, we also survey the Northern Irish experience during this period.
Keywords: Ireland; Economic Growth; Living Standards; Trade Policy; Crises
JEL Codes: N14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| victory of radical nationalists in early 1932 (F52) | shift in economic policy (E65) |
| shift in economic policy (E65) | adversely affected agricultural exports (Q17) |
| economic war with the UK (N44) | decreased comparative advantage of Irish agriculture (Q17) |
| government policies (H59) | economic downturns (F44) |
| protective tariffs imposed by the Fianna Fáil government (E64) | significant reduction in agricultural output (P32) |
| 2008 financial crisis (F65) | damaging effects in Ireland (N93) |
| joining the EEC (F15) | stopped underperforming economically (P27) |