How Competitive is Irish Manufacturing?
Economic and Social Review, Vol. 34, No. 2, pp. 173-93, 2003
Posted: 15 Feb 2004
Ireland experienced significant competitiveness gains in the 1990s on the basis of the standard manufacturing unit labour cost-based measure of the real effective exchange rate. A few sectors mostly dominated by multinational companies have accounted for the bulk of value added in production. Their productivity gains have greatly contributed to Ireland's exceptional growth performance in the 1990s, which has earned it the nickname of Celtic Tiger. However, these sectors represent a disproportionately smaller share of manufacturing employment, and competitiveness in employment-intensive sectors has been much weaker. This paper thus explores Irish competitiveness from the viewpoint of risks to employment.
Keywords: Ireland, competitiveness, unit labor costs, real exchange rate, employment
JEL Classification: F14, F16, E24
Suggested Citation: Suggested Citation