Intermediate goods inputs and the UK content of Irish good exports

July 6, 2018

Authors: Martina Lawless

https://doi.org/10.26504/bkmnext362

The UK accounts for 25.7% of total Irish goods imports, making it a considerably larger source of imports than it is a destination for exports, where it makes up 13.8% of the total. The effects of Brexit on Irish goods imports are therefore of
potentially considerable importance, particularly as many imported products are used as intermediate inputs for further processing within Ireland and thereby contribute to the export performance of Irish firms. This report examines the
structure of Irish imports from the UK using detailed firm- and product-level data to explore the level of reliance, particularly of Irish-owned firms, on UK goods imports and the relationship between imported inputs and exports. Throughout the report, we focus largely on imports of intermediate products, as the key policy motivation in undertaking this analysis is to examine whether, and to what extent, the export activity of Irish-owned firms is exposed to disruptions in the supply chain coming from a negative effect of Brexit on their inputs from the UK.

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