Two-Speed Recovery? Spatial Development in Ireland

A new Research Note published today, Wednesday 10 December 2014, by the ESRI reviews the patterns of economic development across regions in Ireland from 1995 onwards, and examines whether this development has been balanced . The analysis in “Two-Speed Recovery? Spatial Development in Ireland”, by Dr Edgar Morgenroth, confirms that the recent pattern of economic recovery has not been evenly spread across the regions, but also shows that this pattern is evident at least since the mid-1990s.  The observed patterns of output growth in Ireland mirror what is found in many developed countries, where growth is led by urban areas, in which enterprises and households experience the benefits of 'agglomeration economies' through operating and living in larger centres.

Dr Morgenroth noted that “higher levels of per capita output are recorded particularly in the Dublin and South West regions. Employment has grown more in commuter regions such as the Mid-East, Midland and South East, which suggests that there is some positive spillover into neighbouring regions from the stronger economic performance of Dublin and Cork”.   He continued “This analysis points to significant differences between regions, linked to their economic activities and scale of urban development. Consequently, the size of the largest urban centre (and the associated agglomeration economies) is a key structural indicator of regional performance.   The findings in this paper suggest that policy should aim at increasing the scale of secondary urban centres and facilitating development spillovers into their wider hinterland, without encouraging further sprawl”. In this context, the development of both Limerick and Waterford cities merits particular focus.

For more information on the research, please contact:
Dr Edgar Morgenroth (Associate Research Professor, ESRI), edgar.morgenroth@esri.ie  

Notes for Editors

• This Research Note is part of the Quarterly Economic Commentary (QEC) Winter 2014 .The QEC includes the following Research Notes* and Special Article**
• "Irish Economic Performance 1987-2013: A Growth Accounting Assessment", by David Byrne and Kieran McQuinn, ESRI Research Note No. 2014/4/1 (Published Tuesday, 09 December 2014). View Publication.
• "Two Speed Recovery? Spatial Development in Ireland", by Edgar Morgenroth, ESRI Research Note No. 2014/4/2.
• "Distributional Impact of Tax, Welfare and Public Service Pay Policies: Budget 2015 and Budgets 2009-2015", by Claire Keane, Tim Callan, Michael Savage, John R. Walsh and Brian Colgan, Special Article in the Quarterly Economic Commentary, Winter 2014.

*Research N otes are short papers on focused research issues.  They are subject to refereeing prior to publication.
** Special Articles are published in the QEC in order to foster high-quality debate on various aspects of the Irish economy and Irish economic policy. They are subject to refereeing prior to publication.  More information on Special Articles.

ESRI Press Office: 01 863 2000, press@esri.ie