The effect of 1987 Ireland’s Programme for National Recovery on sustainable economic growth: A synthetic control approach

We examine the effect of the 1987 Programme for National Recovery, (PNR) on Ireland’s long-run GDP per capita. To our knowledge, we are the first to show the importance of the program for sustainable economic growth. We employ World Bank data from 1970 to 2018 and the synthetic control approach. Res...

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Bibliographic Details
Published in:	Economics letters Vol. 222; p. 110929
Main Authors:	de Abreu Pereira Uhr, Daniel, de Oliveira Pinheiro, Magnus Kelly, Francisco, Domingos Joaquim, de Oliveira, Mauricio Felipe Bemfica, Uhr, Júlia Gallego Ziero
Format:	Journal Article
Language:	English
Published:	Elsevier B.V 01-01-2023
Subjects:	Economic growth GDP per capita Ireland Synthetic control O57 GDP per capita O47 Synthetic control Economic growth Ireland O43
Online Access:	Get full text
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Summary:	We examine the effect of the 1987 Programme for National Recovery, (PNR) on Ireland’s long-run GDP per capita. To our knowledge, we are the first to show the importance of the program for sustainable economic growth. We employ World Bank data from 1970 to 2018 and the synthetic control approach. Results show that the PNR contributed significantly to increasing Irish GDP per capita with an average effect of 17,374.24 US$. These conclusions remain robust to a placebo test and the Synthetic Difference in Difference approach. •We examine the effect of the 1987 Programme for National Recovery, on Ireland’s long-run growth trajectory.•We find that the program contributed significantly to increasing Irish GDP per capita, with an average effect of 17,374.24 US$.•Results remain robust to a placebo test and the Synthetic Difference in Difference methodology.
ISSN:	0165-1765 1873-7374
DOI:	10.1016/j.econlet.2022.110929