Irish industrial structure, 1979-1985: a longitudinal analysis

Abstract

The manufacturing sector of the economy is vital in that it is the engine of economic growth. Despite developments in other areas of the economy, it still carries much of the potential for job creation, either directly or indirectly, in the years ahead. For this reason and also because of the considerable level of state expenditure on industrial development, good statistics on the performance of this sector are essential in order to have a full understanding of the factors underlying changes in output and employment, in particular. Developments in Irish manufacturing industry in the 1980's have been the subject of much debate. This has centered to a considerable extent on the rapid increase in productivity which has been a function of output growth, quite substantial in comparison to that of our European partners, and declining employment. The authors hope that this paper can be a contribution to this debate by looking at some of the structural changes which have taken place in the last decade and identifying at least some of the factors which have influenced these changes.