The Economic Lessons for Canada from Irelands Success

Running Head : Economic Lessons for Canada

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Date :The Economic Lessons for Canada from Ireland 's Success

Over the past one decade or so , Ireland 's economy has undergone a major economic transformation with its GDP per capita increasing to almost double of what it was in the early 1990s . During this period , Ireland 's rate of unemployment has declined from 16 percent to less than 5 percent an this has made the Republic to emerge as one of the ten richest countries in the world (Blanchard , 2000

p Ireland 's economic growth

The miraculous performance of the Irish republic has been attributed to two major features . This includes a long term productivity boom which dates back to 1950 and 1960s and an employment boom coupled with a sudden short term aggregate demand which occurred in the early 1993 Ireland has been quite focused on its long term productivity for several decades through trade liberty which has opened its local markets to international trade and investments , its business oriented tax policies which encourage more trade and industrial activities as well as offering free secondary education and low cost university education (Acemoglu Josh , 2000

The short term aggregate sudden demand push which occurred in 1993 has seen the living standards of the Irish economy outstrip both the British and the European levels . The major Irish strategy for promoting economic growth over the years is composed of a commercial policy , tax policy , industrial policy and education policy

The unprecedented economic growth in the republic has led to the real GDP growth , a change in consumer price index and a change in the unemployment rate . This exceptional growth rate has been attributed to its EU membership , low corporation tax , large presence of multinationals in the republic , a large number of people in the working age , greater participation of females in the labour market , reversal trend from emigration to immigration , increased investment in the secondary and university education and finally , a more stable public finance position of the republic

Comparison of the Irish and Canadian economic growth

In terms of real GPD , the Irish economic growth for the past one decade has led to a rise in the GDP to almost double as compared to the a 16 percent GDP increase in Canada . The growth rate productivity for Ireland is estimated to be around 3 . 3 percent per annum which is quite high compared to the set international standards and such a development is hard to replicate in Canada (Fortin , 1999 . Although economists have differed on the quantitative factors which are likely to result in such a high productive growth , the qualitative factors which have served to maintain such a process in Ireland includes better technology , highly trained human capital , quality machinery or physical capital , greater social cohesion and better infrastructure

In addition , the level of unemployment in Ireland has significantly declined over the past ten years and currently , its employment rate is believed to be 93 percent of that of the U...