The Irish−US Economic Relations: End of an Era or a Promising Future?

Abstract

Boullet retraces the evolution of Ireland’s economy since 1958 when its leaders decided to abandon protectionism and to open the country to foreign direct investment with a view to promoting exports. The weight of American multinationals in the Irish economy has been ever increasing particularly since Ireland’s entry in the European Community in 1973. The country unquestionably owes much of its economic development to these foreign concerns which have proved to be much more embedded in the local economy than one might expect. Boullet demonstrates that despite the severity of the crisis that hit the USA and Ireland in 2007, American investment did not flee Ireland, quite the opposite. As paradoxical as it may seem, the crisis has reinforced economic linkages between the two countries. However, despite the resilience of those ties, a degree of uncertainty remains on their long-term sustainability. Much will depend on the outcome of the ongoing negotiations between the USA and the European Union on the Transatlantic Trade and Investment Partnership.