Regional economic resilience in Ireland: the roles of industrial structure and foreign inward investment

Breathnach, Proinnsias; Egeraat, Chris Van; Curran, Declan

doi:10.1080/21681376.2015.1088792

Cited by 28 publications

(36 citation statements)

References 11 publications

(16 reference statements)

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“…A new partitioning model termed multifactor partitioning (MFP) has been developed to correct these errors and to partition growth into two or more variables (Ray, 1990). This analysis therefore joins the growing list of applications of MFP (Barbonne, 2003;Breathnach et al, 2015;Gardiner et al, 2013;Lagravinese, 2015;Lamarche et al, 2003;Ray, 1990Ray, , 1996Ray et al, 2012Ray et al, , 2013. It follows Gardiner et al (2013) and Lagravinese (2015) in tracking the MFP effects cumulatively for each successive period, which in this study is from 1987-1988 to 1987-2012. Using the same base year (1987) ensures comparability of the rates for each period.…”

Section: Methodologies For Partitioning Employment Growthmentioning

confidence: 56%

Economic shock and regional resilience: Continuity and change in Canada's regional employment structure, 1987–2012

et al. 2016

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This article analyses regional resilience to economic shock in Canada from 1987 to 2012, a period that included severe recessions and major free-trade agreements. Employment is cross-tabulated by region, industry and gender and partitioned cumulatively using three-way multifactor partitioning for each period from 1987–1988 to 1987–2012. Employment loss in each recession is found to be more closely associated with industry-mix in the preceding growth period than with the region effect. At each recession, manufacturing had much bigger employment losses and a much weaker recovery than business services. Thus manufacturing amplifies economic shocks, while business services act as regional shock absorbers. Manufacturing employment decline in Ontario was influenced by trade liberalization and far exceeds what would be expected from the industry and region effects alone. Female employment growth outpaced male employment growth in every region and in every industry group apart from business and appeared to be more resilient to recession. But corrected for their industry composition and regional disparities, these gender differences are substantially reduced.

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Section: Methodologies For Partitioning Employment Growthmentioning

confidence: 56%

Economic shock and regional resilience: Continuity and change in Canada's regional employment structure, 1987–2012

et al. 2016

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“…Ireland is one of the world's most active countries in its industrial policy. Key objectives include promoting export-led growth (Breathnach et al, 2015), generating industry-university R&D partnerships (Barry, 2014b), and developing better linkages between industries (Barry, 2014a;O'Leary and van Egeraat, 2018). One of the key strategies developed to foster linkages and knowledge spillovers between domestic and MNE activities includes the development of collaborative R&D infrastructure and clusters (Department of Jobs, Enterprise and Innovation, 2014), which have been linked to the emergence of industrial clusters (O'Connor et al, 2017).…”

Section: Mnes As Agents Of Structural Changementioning

confidence: 99%

“…In general, Ruane (2016) attributed Ireland's recovery to 'Ireland's large, foreign-owned, modern, export-oriented, multinational sector and its early and sustained action to deal with the fiscal deficit that emerged in 2008'. On the other hand, Breathnach et al (2015) suggested that MNEs were not a key determinant in the recovery, but rather that the industry mix had an important impact. Thus the findings on the role that MNEs play in the regional resilience in Ireland remain contradictory.…”

Section: Regional Resiliencementioning

confidence: 99%

“…For this analysis, data on employment in firms has been aggregated by 4-digit NACE 2 industry, region (NUTS III) and year. The dataset includes approximately 80% of all manufacturing employment and 90% of total merchandise exports as well as 7% of services employment, accounting for 70% of services exports (which comprise of approximately half of total exports) (Breathnach et al, 2015). The dataset therefore includes the firms that are responsible for the majority of Irish exports and act as leading drivers of economic development thus also offering an important indicator of regional economic prosperity.…”

Section: Datamentioning

confidence: 99%

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The role of relatedness and strategic linkages between domestic and MNE sectors in regional branching and resilience

Landman¹,

Ojanperä²,

Kinsella³

et al. 2021

Preprint

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Despite the key role of multinational enterprises (MNEs) in both international markets and domestic economies, there is no consensus on whether or how they positively impact their host economy. In particular, do MNEs foster the creation of new domestic firms through knowledge spillovers? In this study, we look at the impact of the presence of related MNE industries on the entry and exit of domestic export industries in Irish regions before, during, and after the 2008 financial crisis. Specifically, we are interested in whether the presence of MNEs in a region results in knowledge spillovers and the creation of new domestic export activities in related sectors. To quantify how related an industry is to a region's current export basket we deploy an existing cohesion variable, closeness, that measures the relatedness of a new industry to existing industries within a region. We also introduce a new variable, strategic closeness, which captures not only the relatedness of industries within a region but their own connectivity or embeddedness. We use a dataset containing all government-supported export firms in Ireland between 2006-2018. We find that the presence of related MNE industries is associated with the entry of new domestic activity, suggesting that Irish regions benefited from domestic-MNE linkages. However this relationship was temporarily lost after the financial crisis and only recently re-established, with domestic entry dependent on the presence of highly embedded MNE sectors. Furthermore, we find that related MNEs help protect domestic industries against exit after the crisis and thereby play a role in enhancing regional resilience.

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“…The substantial difference in exports per plant between foreign and Irish plants in Table 4 while notable is not surprising given the prominence of foreign firms for Irish export performance, along with the impact 'contract manufacturing' can have on official statistics (O'Leary, 2015). The duality of the Irish economy in terms of Irish and foreign-owned economic activity has been widely studied (e.g., Barry & Bradley, 1997;Barry, Görg, & Strobl, 2005;Barry & Hannan, 1995;Breathnach, van Egeraat, & Curran, 2015;O'Leary, 2015). We disaggregate the five largest clusters by exports (2012 value) into Irish and foreign-owned plants in Table 5 to provide further indications of their relative employment, output and wages per worker trends.…”

Section: International Performance Of Clustersmentioning

confidence: 99%

Clustering in Ireland: development cycle considerations

O’Connor

Doyle

Brosnan

2017

Regional Studies, Regional Science

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Interest in clusters and cluster-based policies in Ireland dates back to the Culliton Report (Culliton, 1992), which highlighted the importance of a competitive business environment to the development of enterprise and recommended the promotion of clusters focused 'on niches in national competitive advantage' (Doyle & Fanning, 2007, p. 268). The Culliton Report's policy recommendations were heavily informed by Porter's (1990) definition and measurement of clusters. 1 Clusters were described as 'geographic concentrations of interconnected companies and institutions in a particular field' (Porter, 1998, p. 78). Porter (1990) identified the potential of clusters within a framework of locational competitive advantage as providing mechanisms for improving national, regional and local productivity, innovation capacity and new business formation. 2 ABSTRACT Motivated by ongoing research into the cluster concept that considers dynamic features of economic development and the cluster life cycle, differences between traded clusters and local activity across different spatial scales are examined for ireland. using recent cluster definitions for europe, this paper presents clustering patterns within the irish economy from 2008 to 2012. We report on data requirements when applying the benchmark cluster definitions to irish data. integrating small, open economy features with life-cycle concerns, we focus on specific clusters in ireland, along with their export performance, noting that appropriate cluster boundaries are neither regional nor national. analyses indicate that while ireland hosts a number of internationally competitive clusters, foreign-owned firms remain substantially more productive than indigenous enterprises. We identify the geographical location of these prominent clusters at the nutS-3 regional level and highlight the role of regional features for differences in adaptive cycles of clusters. We identify a substantial portion (60%) of irish regional wage variation relates to the different cluster mixes across regions.

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Regional economic resilience in Ireland: the roles of industrial structure and foreign inward investment

Cited by 28 publications

References 11 publications

Economic shock and regional resilience: Continuity and change in Canada's regional employment structure, 1987–2012

Economic shock and regional resilience: Continuity and change in Canada's regional employment structure, 1987–2012

The role of relatedness and strategic linkages between domestic and MNE sectors in regional branching and resilience

Clustering in Ireland: development cycle considerations

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