The Role of Growth Factors in the Phenomenon of the Celtic Tiger

Abstract:     
The paper investigates the main characteristics of Ireland’s economic growth, which made possible the emergence of the phenomenon of the Celtic Tiger, with a special attention to and the role of economic policy and international economic conditions. The attention is focused on revealing the causes of this extraordinary performance, viz. on fundamental factors that determined economic growth and development both at the macro and micro (manufacturing) levels from the early 1960s to the late 2000s, i.e. prior to the outbreak of the current global crisis. For that purpose, an endogenous growth model based on the mapping of the mechanism of technical progress was used. In addition, the author showed the role of external factors through an econometric analysis of the demand side of Irish growth and revealed globalisation effect related to foreign direct investment.

Number of Pages in PDF File: 25

Keywords: endogenous growth models, regression analysis, globalisation, Ireland

JEL Classification: C22, E66, F21, F31, O11, O41

working papers series