Responding to the crisis: are policies aimed at a strong indigenous industrial base a necessary condition for sustainable economic growth?

peer-reviewedWe examine whether a strong indigenous manufacturing base is a necessary condition for sustainable economic growth in the case of two small, open economies, Ireland and Sweden. Sweden has been impacted by the economic crisis to a lesser degree than Ireland; we explore (through a manufacturing activity lens) the reasons for the asymmetric impacts and ask if the nature of the shock is related to 'Economic Sovereignty' and to the type of industrial policy. We argue Sweden was less affected given that its indigenous firms control the highly export-focused and technology-based engineering sector whereas in Ireland high-technology sectors are controlled by foreign firms. In terms of policy implications, we suggest that industrial policy should aim for sustainable economic activity and growth such that industrial activity within the economy should be able to minimise the impact of asymmetric shocks such as the current global economic recession.ACCEPTEDpeer-reviewe

The development and growth of the software industry in Ireland: an institutionalized relationship approach

peer-reviewedIreland's software industry emerged in the 1970s and 1980s due to significant international developments and, more importantly, the industrial policy approach adopted in Ireland. The attraction of software foreign direct investment during these decades was followed by the emergence of an internationally competitive Irish software sector. A multitude of factors combine to explain the trajectory of software in Ireland: from developments related to globalization and international trade, to policy makers' efforts to promote an industry where Ireland could forge a comparative advantage internationally. An analysis of industrial dynamics and institutionalized relationships (IRs) furthers our understanding of significant developments in the industry in terms of interactions between firms, government and other stakeholders. This paper makes a novel contribution by analysing Ireland's software industry within the IR framework. The IR approach we employ focuses on the finance IR, the purchase IR, the employment IR, and the commercial IR. The adoption of the IR framework approach is particularly insightful in the Irish case as it facilitates a multifaceted analysis of the complex relationships that have moulded the Irish software industry. Such an approach also facilitates a study of the policy implications and policy prescriptions that are pertinent to the software sector.ACCEPTEDpeer-reviewe

ANALYSIS OF THE CURRENT ACCOUNT POSITION OF FOUR ASIAN COUNTRIES BEFORE THE 1997 CRISIS

The current paper presents an empirical analysis of the current account positions during the pre Asian crisis period, in the four most crisis-hit countries (namely Thailand, the Philippines, South Korea and Indonesia). We have employed the procedures advocated by Husted for the presence of stationarity in current accounts by estimating a cointegration relationship between any country's exports and imports. The results do not substantiate the presence of cointegration between the series, implying that the macroeconomic fundamentals in these countries prior to the crisis were far from robust, at least from the perspective of current account sustainability. Copyright 2007 Blackwell Publishing Ltd