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Introducon

            
!    "#$%   &  
' #$ 
 
&
Polical Economy
   (       
&
  ) '("*%
  *           
 
"+,
%  
 -          
"+,%&
 
 
      )    
.  /
01,23')
--"*%
))
4 (   0 &     
          &  '  
) "*%*
  "%&

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')+'
'
*"%5/ &
 /  5   )  )
  &#')
            

Ireland in 2004
      !   #$   
'"*6%-
''7&"$
%0')1,
"*6%' 
(88'
#$99'":)+;36%'
)
 )
 88<&+= 
     >     &
 "*6%
   +=(  &   =  
?"*6%
#   @
 $0 "$0%
 #,-"#,-%
 ,$",#0$-%
 AB2
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C   #$/

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Introduction This case study of Ireland reviews the political economy that contributed to the economic boom of 2004, then the subsequent economic decline to 2011. In reviewing the attractiveness for foreign direct investment (FDI) in 2004, this review looks at the low corporate tax rate, government investments in infrastructure, FDI promotion organisations and relevant factor conditions. The contributing factors in the economic decline to 2011 are discussed, as well as an outlook for the future economy of Ireland. Political Economy The interdependency between a country's political system, economic system and legal system is known as the political economy. The interaction of these factors determine the level of economic well-being experienced by the country's inhabitants (Hill, 2011). In a hierarchical sense, Hill states that the political system shapes the economic and legal systems, and this shaping occurs depends on a number of factors. Individualism is the emphasis of independence and autonomy in a society (McShane et al, 2010) and lends itself to a democratic nations where government is elected, and held accountable. Collectivism is the degree to which society or government emphasise a responsibility to the whole (McShane et al, 2010) and is linked to a totalitarian style of government where freedom of speech and other political liberties are not granted. The level of collectivism or individualism will shape government policies and intervention within the legal and econo ...
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