Regional economic resistance and divergence in Ireland, 2011–22

Abstract

This paper examines the resistance of Irish regions to potential future economic shock, focusing specifically on employment change in firms in receipt of assistance from the Irish government’s enterprise development agencies. The paper classifies both regions and sectors in terms of their employment performance during the course of the 2011–22 period and assesses the roles of sectoral composition and firm nationality in shaping regional performance. While nationality mix is significant, sectoral composition is seen as having a more important impact on regional employment performance. It then uses the same approach to predict the performance of regions in the context of potential future shocks post 2022. The paper suggests that the Border region is the least resistant to potential future shock. Other regions with relatively low resistance include the Mid East and the Midlands. The paper subsequently considers the implications of the findings for both regional economic divergence trends and the policy aim of balanced regional development in Ireland.

Keywords

• regional resilience
• regional resistance
• industrial structure
• fdi
• divergence
• ireland