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Research Brief

The Single Market's Impact on the Irish Tiger Economy

Analyzing the interplay between market integration, FDI, and national policy in Ireland.

Collaborators
 Meet the Research Group

Level

HHX

Grade

12

Status

Completed

This project serves as an early case study in the mechanisms that later became central to my studies of the Euro crisis and economic robustness.

Summary

This project analyzes how the EU’s Single Market contributed to the development of the so-called Irish Tiger Economy. The project investigates how Ireland’s growth model in the 1990s and 2000s was driven by institutional integration into the EU and strategic attraction of foreign direct investment—but also how this model created structural vulnerabilities that became fatal during the financial crisis.

Research Questions

How did the EU Single Market function as a growth engine for the Irish economy?

What role did Foreign Direct Investment (FDI) play in productivity and employment?

Why was the Irish growth model so vulnerable to the global financial crisis?

Is EU integration value-neutral for national political choices?

Method & Theory

Model Framework

Interdisciplinary Analysis (Economics & History)

Identification Strategy

Case study of a small open economy in a globalized world.

Data & Frequency

Macroeconomic indicators (GDP, FDI, Unemployment) and historical sources.

Estimation Approach

Qualitative assessment of causal links between EU policy and national growth.

[ Transmission Pathway Diagram: Model Architecture ]

Central Points

  • Growth Engine: The Single Market reduced trade barriers and made Ireland an attractive 'hub' for US companies (Tech/Pharma).

  • FDI Dependency: High capital inflows boosted productivity but created an economy dependent on external decision-makers.

  • Fragility: The growth model was concentrated and reliant on tax incentives, exacerbating the crisis when capital flows reversed.

  • Political Space: EU membership creates opportunities but also limits the policy space of nation-states during crises.

Bibliography

  • McAleese, Dermot. (2000). The Celtic Tiger: Origins and Prospects. Trinity College Dublin.
  • Murphy, Antoin E. (2000). The 'Celtic Tiger' - An Analysis of Ireland's Economic Growth Performance. Peace Palace Library.
  • Boyle, Paul. (2013). Policy: A single market for European research. Nature.
  • Aussilloux, Vincent. (2017). Making the Best of EU’s Single Market. Cairn International.
  • OECD. (2020). GDP per hour worked. OECD Data.
  • World Data Bank. (2019). GDP growth (annual %) - Ireland. World Bank Group.
  • European Commission. (2020). Shaping the Digital Single Market.
  • Central Statistics Online. (2017). Balance of International Payments.

Subjects

International Economics A

Sources

Sources

Economic Theory, EU Reports, Historical Analysis.

Software

Word / Excel.

0
Reference
Jørgensen, Anton M. E., Berge, Noah Hjorth, Hansen, Marius Bruun, Frandsen, Peter & Børresen, Elias Walther. The Single Market's Impact on the Irish Tiger Economy. HHX Project.

Perspectives

Tax Policy: Ireland's use of low corporate tax as a competitive parameter.

EU Integration: Pros and cons of deep economic integration for small states.

Crisis Management: Lessons from boom-bust cycles in housing and financial markets.

Cite this work

@misc{jorgensen,
  author = {Jørgensen, Anton M. E. and Berge, Noah Hjorth and Hansen, Marius Bruun and Frandsen, Peter and Børresen, Elias Walther},
  orcid  = {https://orcid.org/0009-0006-4129-8044},
  title  = {The Single Market's Impact on the Irish Tiger Economy},
  url    = {https://antonebsen.dk/en/projects/irish-tiger}
}
Jørgensen, Anton M. E., Berge, Noah Hjorth, Hansen, Marius Bruun, Frandsen, Peter & Børresen, Elias Walther. The Single Market's Impact on the Irish Tiger Economy. HHX Project.