Sources of regional divergence in the Celtic Tiger: policy responses
Citation:
O'Leary, Eoin. 'Sources of regional divergence in the Celtic Tiger: policy responses'. - Dublin: Journal of the Statistical and Social Inquiry Society of Ireland,Vol. XXXII, 2002/2003, pp1-32Download Item:
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Abstract:
This paper presents new evidence on the sources of living standards
divergence among Irish regional authority areas during the ?Celtic Tiger? boom
period of the 1990s, which has been associated with unbalanced regional
development. The paper shows that strong regional living standards divergence
during this period was driven both by the emergence of the ?demographic dividend?
and by productivity. Productivity divergence was, in turn, driven by the
manufacturing sector. Although structural change had a convergent effect on
productivity in previous decades, this effect was negligible during the ?Celtic Tiger?
boom. The discussion then considers the appropriate response to Ireland?s regional
policy dilemma, namely how to address the problem of regional imbalance without
compromising national growth and competitiveness. At the beginning of the new
millennium, regional policy is back on the agenda with the inclusion of balanced
regional development as a key objective in the National Development Plan: 2000-
06. However, delays in the formulation of the National Spatial Strategy gives rise to
concern. Based on the results of the paper, it is argued that future growth in regional
and therefore national living standards hinges on continued productivity growth in
internationally competitive industries based in Irish regions, as demographic factors
and structural change are unlikely to continue playing prominent roles. It
recommends that policy be targeted at improving regional growth and
competitiveness in regional authority areas, rather than aiming for balanced regional
development.
Description:
Read before the Society, 7 November 2002
Author: O'Leary, Eoin
Publisher:
Statistical and Social Inquiry Society of IrelandType of material:
Journal articleCollections:
Series/Report no:
Journal of the Statistical and Social Inquiry Society of IrelandVol. XXXII 2002/2003
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Full text availableKeywords:
Convergence, Regional policy, Productivity, Living standardsISSN:
00814776Licences: