How Competitive is Irish Manufacturing?
12 Pages Posted: 2 Feb 2006
Date Written: September 2002
Ireland has had significant competitiveness gains in the 1990s on the basis of the standard manufacturing unit labor cost-based measure of the real effective exchange rate. A handful of 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