Globalization and Ireland's Export Performance
Enacting Globalization: Multidisciplinary Perspectives on International Integration, chapter 19, pp. 205-218
This chapter provides empirical evidence on Ireland's export performance in the context of increased globalization over the past ten years. Using insights from recent contributions to international trade and economic growth theories, we first examine patterns and changes of revealed comparative advantages for Ireland's exports of goods and services. We then investigate whether Irish exports have specialized in fast-growing industries and markets in world exports over the period. Third, we analyse determinants of export performance dynamics, focusing on product and market structures and competitiveness effects. Finally, to put Ireland's export performance into perspective, we compare this evidence with recent developments in other selected European small open economies. Introduction: The growing integration into the world economy of emerging economies, such as China and India, as well as Central and Eastern European countries, has led to changes in global patterns of production and trade. In addition, falling transportation and communication costs have enabled an increasing internationalization of production and a surge in the trade of services. Ireland is one of the most globalized economies in the world. The most recent KOF Index of Globalization released by the KOF Swiss Economic Institute, which measures economic, social and political globalization, ranks Ireland second after Belgium. With respect to the economic dimension of globalization, Ireland ranks third after Singapore and Luxembourg. Data for 2011 indicate that exports of goods and services accounted for 104.6% of Ireland's nominal GDP. Against this background, we assess Ireland's export performance over the past decade.