Mainstream Explanations

Abstract

The three chapters in this section of the book move from a description of the Celtic Tiger to examining how it is understood. This recognises that, as the opening quote above states in relation to industrial development, understanding derives from a theoretical framework. Therefore, to gain a deeper understanding of the Celtic Tiger, we need to examine the theoretical frameworks which have been used to interpret it. This chapter examines the mainstream explanations. It begins by outlining explanations of the Celtic Tiger offered by some leading economists, interrogating in particular the reasons they offer as to why its success should continue. The chapter then critically elucidates the understanding of economic growth and of the links between growth and social well-being which find expression in these mainstream explanations. Finally, it reveals assumptions which inform mainstream explanations, both those derived from neoclassical economics and from modernisation theory in sociology.

The problems with existing empirical evidence, as well as the lack of empirical studies of the evolution of enterprises and industries in Ireland, is [sic] largely a reflection of the shortcomings of the theories used to generate questions about the industrial sector. The dominant way of thinking about industrial development, in Ireland as in other places, downplays the importance of analysing these developmental processes for understanding economic outcomes.

Mary O’Sullivan, 2000, 283