Productivity growth Comparative productivity Irish per capita productivity
Statistical and Social Inquiry Society of Ireland
O'Toole, Ronnie. 'Ireland's recent productivity performance'. - Dublin: Journal of the Statistical and Social Inquiry Society of Ireland,Vol. XXXIV, 2004/2005, pp139-151
Journal of The Statistical and Social Inquiry Society of Ireland Vol. XXXIV 2004/2005
This paper examines the reasons for the recent divergence in US and
European productivity performance. The paper shows that the structure of European
industry is ill suited to the challenge of innovation which has to be faced given the
rapid development of ICT technology and the fact that the ability to grow
economically by imitating US innovation becomes more limited as convergence to
US levels of output is approached. Turning to Ireland, the paper will show that while
Ireland’s productivity growth over the last decade has been impressive, we still
compare unfavourably with Europe when adjustment is made for transfer pricing.
Much of Ireland’s economic success has been through the employment of more
resources, not their greatly improved utilisation. Further, the persistent problems of
Irish per capita productivity stem from the well-known deficiencies of Irish public
services, and the less appreciated failures of ICT-using services, particularly retail
sales. Finally, the paper argues that Ireland exhibits greater cultural preference for
(voluntary) leisure than our European neighbours.
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