The Irish Economic Crisis: The Expiry of a Development Model?

Abstract

This article studies the impact of the 2008 economic crisis on the Irish development model. The Republic of Ireland has developed its economy thanks to an FDI-led strategy. This strategy was very successful during the Celtic Tiger period in the 1990s and 2000s. Will the crisis put an end to Ireland’s economic development? If Ireland manages to keep a low corporate tax rate, it appears that the country will be able to carry on with its development model. However, Ireland seems to have almost achieved its catching up with the EU core countries and it will be difficult to reach growth rates similar to those of the Celtic Tiger period.