ABSTRACT
This chapter deals with the economy of the Irish Republic, because it constitutes the major part of the economy of all Ireland, and because it has been more thoroughly documented. Where possible the discussion has been expanded to cover Northern Ireland, as well as to put Irish economic performance into an international context. The type of economic growth which Ireland has experienced favours the employment of those with skills, in such areas as computing and professional services. The strategy of basing economic development on attracting foreign investors has been criticised. The economy of Northern Ireland is highly dependent on subsidies from Britain, which amounted to 24 per cent of gross domestic product in 19931994, a level comparable to the 1980s, but up from 10 per cent in 1970. Despite the closeness of the Irish and British labour markets, three elements of government policy play some role in explaining the very high long-term unemployment rates in the Irish Republic.
