A Review of Explanations for the Boom

The first section of this chapter presents a survey of the literature that has aimed to explain what caused the boom. It aims to discuss virtually all the economic explanations that have been put forward. These include fiscal stabilisation, tax cuts, delayed or belated convergence, strong demand growth in export markets, supply of labour, education, the single European market, EU structural funds, social partnership, foreign direct investment, the small/regional nature of the economy, Irish indigenous industry and some other explanations. The second section undertakes a preliminary assessment of the suggested explanations, arguing that some of them are not very convincing and that it will not be necessary to consider them further, whereas the others will call for further consideration and assessment in later chapters. The suggested explanations that remain for later consideration as potentially significant causes of the boom are strong demand growth in export markets, foreign direct investment, the single European market, education for fast-growing industries, the small/regional nature of the economy, Irish indigenous industry, EU structural funds and social partnership.