Dermot McAleese - Academia.edu (original) (raw)

Papers by Dermot McAleese

There are many ways of studying the effects of protection on the industrial structure and trade f... more There are many ways of studying the effects of protection on the industrial structure and trade flows of the protected economy. In this paper, we do so by comparing certain features of the economies of Northern Ireland and the Republic of Ireland during the mid-\\u27sixties. At that time, the Republic was a highly protected economy and consequently would be expected to be much less specialised than Northern Ireland, both in the sense of having a less diversified range of industries and, at an intra-industry level, of having higher shares of output exported and higher import penetration of domestic markets. The results prove to be remarkably consistent with these expectations. They suggest very strongly that, even by 1971, the Republic had a long way to go before achieving the levels of specialisation reached in Northern Ireland

Economic and Social Review, 1995

This paper updates and extends previous studies of Irish intra-industry trade (IIT). The reported... more This paper updates and extends previous studies of Irish intra-industry trade (IIT). The reported IIT proportions are calculated from the most comprehensive Irish trade data set used in this context to date, both in terms of time coverage and of statistical detail. Even at a five-digit level of industry disaggregation, 38 per cent of all trade and 44 per cent of trade in manufactured goods were found to be IIT in 1990. The stabilisation and partial decline of IIT levels in the 1980s, detected by earlier studies, is confirmed by reference to Grubel-Lloyd and Aquino-adjusted measures. This decline reflects a pattern of increased inter-industry specialisation instead of the trend towards higher intra-industry specialisation observed at the earlier stages of Irish trade liberalisation. Between 1985 and 1990, Irish industry specialised out of labour-intensive sectors into capital-intensive, export-oriented industries. As a result, growth of manufacturing employment (3 per cent) was consi...

For many decades Ireland’s output per capita ranked about twenty-fourth among the world’s industr... more For many decades Ireland’s output per capita ranked about twenty-fourth among the world’s industrial nations. Suddenly, in the mid-1990s Ireland started to move up, from twenty-second in 1993 to eighteenth in 1997 and an amazing ninth in 1999.1 The many facets of Irish success over these years, from a disproportionate representation in popular music to the largest current account surplus in the industrial world, caught the public imagination at home and abroad. This paper examines the startling turnaround in Irish economic performance that began in the mid-1980s. By comparison with Ireland’s previous economic performance there is indeed a miracle to explain, but from a global perspective the question is surely why it took so long for Ireland to catch up with the rest of Europe. Although most attention has focused on aggregate output growth rates—real GDP growth averaged 10 percent a year over the period 1995–2000—we will show that the salient feature of Ireland’s catch-up has been a...

for many useful suggestions. The anonymous data used in this paper was generously made available ... more for many useful suggestions. The anonymous data used in this paper was generously made available by Forfas. The views expressed in this paper are the personal responsibility of the author. They are not necessarily held by either the Central Bank and Financial Services Authority of Ireland or the ESCB.

The statistics show GNP growth averaging over 8 per cent since 1994. Between 1994 and 1999, real ... more The statistics show GNP growth averaging over 8 per cent since 1994. Between 1994 and 1999, real GNP is projected to increase by two-thirds. Growth in numbers employed has reached unprecedented rates, the national finances are regaining health, the balance of payments remains positive, and inflation remains relatively dormant. In a landmark judgement, the Department of Finance recently declared itself “comfortable” with the economy’s performance and the public finances. And to cap all this good news on the economic front, we have the suspension of violence in Northern Ireland.

*Why Study Economics? *What Makes Nations Grow and Prosper? *The Free Market in Action - An Overv... more *Why Study Economics? *What Makes Nations Grow and Prosper? *The Free Market in Action - An Overview *Consumer Behaviour and Market Demand *The Supply Curve and The Firm Under Perfect Competition *Explaining the Size of Firms and Market Structure *Market Structure, Price Decisions and Economic Performance *Hiring Labour *The Investment Decision and Interest Rates *The Market System and the Need for Government Intervention *Aggregate Supply and Demand: The Macroeconomic Framework *Inflation and Central Banks *Understanding Interest Rates *The Problem of Unemployment *Causes and Consequences of Business Fluctuations *Fiscal Policy, Budget Deficits and Government Debt *Trade Gains and Trade Policy *Foreign Investment, Capital Flows and Labour Migration *The Balance of Payments and Why it Matters *The Foreign Exchange Market and How Exchange Rates are Determined *Exchange Rates and Exchange Rate Regimes *Assessing the Macroeconomic Environment *Economics and Business: An Overview

Quarterly Economic Commentary, 1979

Starting from humble beginnings thirty years ago as a promotional body within the Department of I... more Starting from humble beginnings thirty years ago as a promotional body within the Department of Industry and Commerce, the Industrial Development Authority (IDA) has grown into an organisation employing almost 540 people, with an annual budget of approximately £85 million in 1978 and with programmes bearing on practically every aspect of industrial activity in the Irish economy. The IDA wields more influence on the formulation of industrial policy than any other body in the state. It is a sophisticated, efficient organisation which likes to operate with a high profile. Given its scale of expenditure and pervasive influence, one would expect the IDA to constitute a target for much disaffected criticism. This, however, is not the case. The IDA arouses mostly benign vibrations in the Irish body politic, a fact which in itself lends interest to a description and evaluation of this remarkable organisation's activities.

This paper contrasts the stabilisation programmes of Ireland and Greece in the 1980s and draws ou... more This paper contrasts the stabilisation programmes of Ireland and Greece in the 1980s and draws out lessons for the design of such programmes in small open economies. Programmes relying on government revenue increases are judged to be less likely to succeed than those based on expenditure reductions. The contribution which devaluation in the initial stages of such a programme can make is also emphasised, but only in the context of a regime with established anti-inflationary credibility. I INTRODUCTION A mong the economies of the European Community, Ireland and Greece are as close as can be to the proverbial textbook "small open economy". Both are extremely open, and both are too small in traded goods and assets *I wish to thank Peter Neary and the Irish Economic Association for inviting me to present this paper to their conference on "Ireland's Successful Stabilisation? Achievements and Prospects" in September 1991. I also wish to extend very special thanks to Dermot McAleese for his warm hospitality and for extremely useful comments. The many enjoyable discussions with Sean Barrett, Dermot McAleese, Desmond McCarthy, John Martin, Peter Neary and other par ticipants in the conference are especially appreciated. The research that has served as the background to this paper has been financed through the CEPR International Macroeconomics and Financial and Monetary Integration in Europe programmes, the ESRC and the Centre for Planning and Economic Research (KEPE) in Athens over many years. I extend my thanks once again to these organisations. Of course, I am solely responsible for the points of view expressed, which should not be attributed to any of the organisations with which I am affiliated.

THE economic benefits of trade liberalisation are conventionally divided into two parts: static g... more THE economic benefits of trade liberalisation are conventionally divided into two parts: static gains and dynamic gains. Static gains refer to the advantages of increased specialisation arising from easier access to international markets. They lie at the core of the classical theory of comparative advantage. It was static gains Ricardo had in mind in his famed and much-debated assertion that international trade increases "the mass of commodities and the sum' of enjoyments". Other benefits, however, may accrue". First, freer trade may lead to more exploitation of economies of scale. Secondly, it may create more competitive conditions in national markets thereby increasing productive efficiency. Finally, faster economic growth may ensue on account of enhanced long-run investment opportunities. For example, it is argued that industries producing new technically-sophisticated products will develop only in the context'of extremely large integrated markets. These last three types of gain constitute the dynamic gains from international trade.-*The author gratefully acknowledges the helpful (Comments of Dr. Brendan Walsh and Mr. J. Durkan of The Economic and Social Research Institute, and Mr. D. O'Floinn of the Department of Finance. Responsibility for any remaining errors is mine alone. I. It may be added that this formula was "applied by the present author to estimate the-effects of free trade on Irish imports [13]. .-,V-' .->' ••

Precis: This paper estimates the likely direction and size of changes in manufacturing employment... more Precis: This paper estimates the likely direction and size of changes in manufacturing employment associated with expansion of Ireland's extra-EEC trade. These changes are likely to be negative for extra-EEC trade generally, strongly negative for trade with LDCs and Japan but positive for trade with North America. 'he purpose of this paper is to derive employment coefficients for Irish f trade with countries outside the European Community (henceforth extra-EC countries). Employment coefficients are estimates of jobs "gained" per lira Irish exports to different trading regions and jobs "lost" per llm Irish imports from these regions. Our estimates are based on a number of assumptions, a key one being that an extra £lm imports displaces an equivalent amount of domestic production and an extra ilm exports adds an equivalent amount to domestic production. Employment coefficients have been derived for other European countries and the United States but not, unt...

Economic and Social Review, 1992

This book provides a comprehensive empirical assessment of the role of overseas industry in Irela... more This book provides a comprehensive empirical assessment of the role of overseas industry in Ireland. Based on new research data on exports, regions, linkages, job gains and losses, it also assesses the major critique of overseas industry and should contribute significantly to more informed debate and evaluation of the topic. Contributors to this book include Michael Buckley, Jim Fitzpatrick, Anthony Foley, William Keating, Dermot McAleese, Frances Ruane, P.J. Drudy, Dan Flinter, Tom Keane, Kieran A. Kennedy, Aebhric McGibney and Andy Storey.

Precis: There are many ways of studying the effects of protection on the industrial structure and... more Precis: There are many ways of studying the effects of protection on the industrial structure and trade flows of the protected economy. In this paper, we do so by comparing certain features of the economies of Northern Ireland and the Republic of Ireland during the mid-'sixties. At that time, the Republic was a highly protected economy and consequently would be expected to be much less specialised than Northern Ireland, both in the sense of having a less diversified range of industries and, at an intra-industry level, of having higher shares of output exported and higher import penetration of domestic markets. The results prove to be remarkably consistent with these expectations. They suggest very strongly that, even by 1971, the Republic had a long way to go before achieving the levels of specialisation reached in Northern Ireland. I nternational trade theory suggests that the structure of production and trade in a protected economy will, ceteris paribus be less specialised tha...

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Economic and Social Review, 1995

Quarterly Economic Commentary, 1979

Economic and Social Review, 1992

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