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Economy of Dublin

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The south facade of the Custom House by night

Dublin is the largest city and capital of Ireland, and is the country's economic hub. As well as being the location of the national parliament and most of the civil service, Dublin is also the focal point of media in the country. Ireland's transportation network radiates from the city and Dublin Port is responsible for a large proportion of Ireland's import and export trade.

The Economy of Dublin is increasing in regional and global importance. Dublin has frequently been ranked as the highest or among the highest countries on a variety of globalisation indices. However this should not be interpreted as an only-positive thing as Ireland has suffered deep economic recession beginning in 2007 and leading to a rise in nationalism, internal corruption, and government serving special interests primarily by 2011. Ireland has taken an IMF-loan from the EU as of 2010.[1] Nevertheless, Given the primacy of Dublin within the Irish urban network, this suggests there might be a larger global future in Dublin.[2] The result of governmental policies, including lower business taxes, combined with the growth of the interactive media industry between 1990 and 2000, is a now much stronger economy as Ireland emerges as a global leader in technology and other industries. [3] Historically Ireland has been plagued by famines, political, economic, and religious tensions[4], as well as protectionist economies which have only since the 1990's with the formation of the European Union and the opening of Ireland to Foreign Direct Investment, contributed to Dublin's becoming a global city in unprecedented ways.[5]Ireland developed an economic policy based on exports and attracting foreign headquarters and have significantly increased the size of the national economy over the last few decades.[6] The rapid growth of information, technology, and communication jobs in Dublin in recent decades has caused rapid globalization in Dublin. It is now a service economy for primarily other European businesses, largely in the form of call centres.[7] Like many other locations, those in the inner city of Dublin who have less money are frequently turning to drugs like heroin increasingly over the last decades. This is due to a number of factors including migration, immigration and changing economic structures.[8]


Like elsewhere in Western Europe, Ireland is dealing with an ever-aging population and fewer and fewer couples have kids. Nevertheless, census data shows that Ireland now has over 4 million people, and the population is increasing; this is a number it had not had since before the Irish Potato Famine. Interestingly, the growth in Dublin has also lead to growth in the transportation network of which it is the heart and the fastest growing town in the country is Sligo in Northwest Ireland, not Dublin.[9] The government has recently adopted Action Plans on Jobs in Ireland, seeking to implement job growth and unemployment goals and discovering where they are succeeding and where they are not.[10] The rapid change from the largely nationalist economy of Dublin to the more liberal, free trading, computer, and commerce economy present in Dublin today has created some problems as well. For one, many economists don't think that Ireland having such strong economic growth is sustainable.[11] On the one hand, Dubliners have reduced carbon emissions significantly over the last 20 years and are beginning to join the race to create biofuels using algae and bacteria.[12][13] On the other, While the economic development of Ireland and Dublin have been aimed at sustainability, economists worry that the 12.5% tax rate on corporations in Ireland and the ties to the EU which once lead to many corporations, often multi-national, taking tax inversion on a lower rate is losing power as a motivator for business to move to Ireland due to the U.S. Tax Cuts and Jobs Act of 2017 leveling the taxation field between countries and encouraging tax inversions back to the U.S; a process which causes all assets and intellectual property to be added to the U.S. GDP from Ireland's[14].[15] For the first time in the last few years, Ireland's economic growth was not 15-25%, it fell by roughly 2/3. Current reporting from as of February 2018 says that the city and country's market is still growing with unemployment decreasing, however housing remains a problem. The current 5.8% growth is still the highest in Europe. Ireland has held this title for four years and, partially due to the effects of Brexit, Dublin is expected to remain a European Headquarters for at least some years, though with perhaps fewer U.S. Corporations headquarters.[16] Dublin's transit system is accommodating more people every year than ever before. The city, now home to 1,200 startups and with many remaining U.S. headquarters, has continued to have an influx of population at high rates since 2000. They have added nearly 900,000 people since that point.[17] Becoming a hub of specialization could have long-term impacts on trade in Dublin as the laws of economics that dictate an international division of labor may be threatened by traditional trade-based economy and helped by other economic sectors.[18]Dublin's global economic fate remains to be seen.

Dublin is home to a number of multinational corporations, including in "hi tech" sectors such as information technology, digital media, financial services and the pharmaceutical industry. Dublin is also the location of the headquarters of several large Irish public companies including Bank of Ireland, CRH plc, Ryanair, Smurfit Kappa and Paddy Power. Many of Ireland's public sector employers are based in Dublin including utility companies such as ESB Group, educational institutions such as Dublin Institute of Technology, Trinity College, Dublin and University College Dublin, most of Ireland's higher courts, RTÉ (Irelands national public service broadcaster), and several teaching hospitals. Other employers service the tourism and retail markets.

Analysis

Rankings

In 2017 Dublin ranked 1st in Ireland by disposable income per person, at 110% of the State average.[19]

In 2008, it was the city with the 2nd highest wages in the world,[20] dropping to 10th place in 2009,[21] and (according to a Brookings Institute report in 2012) had the 14th highest income per capita in the world at $55,578 (€42,960).[22]

As of 2011, Mercer's 2011 Worldwide Cost of Living Survey listed Dublin as the 13th most expensive city in the European Union (down from 10th in 2010), and the 58th most expensive place to live in the world (down from 42nd in 2010).[23] Similar surveys of ex-pats in 2015 and 2017 ranked the city as the 49th and 47th most expensive city respectively.[24][25]

GDP

According to Eurostat 2012 figures, the GDP of the Dublin Metropolitan Area (including counties Meath, Kildare and Wicklow) was approximately €83.bn, representing 47% of Irish GDP, and ranking 20th among European metropolitan areas by Gross metropolitan product.[26] County Dublin alone had a GDP of €73 billion and a GDP per capita of €57,200.[27]

According to 2014 CSO figures, County Dublin contributed €87 billion to national GDP with a GDP per capita of €68,208 and the Greater Dublin area contributing €103 billion and a GDP per capita of €56,971.[28]

Other indicators

Dublin was at the centre of Ireland's rapid economic growth from 1995 to 2007 when both the standards and the cost of living in the city rose dramatically. By 2018, the Economic and Social Research Institute reported that the concentration of population and economic activity in Dublin (accounting for approximately 50% of all economic activity in the country) was "unsustainable".[29] The Irish Times also queried whether the lack of available rental accommodation in the capital would impact Dublin's economic growth.[30]

Government

Dublin is the capital of Ireland, and much of the Irish Civil service is located in the Dublin 2 postal district directly to the south of the River Liffey.[citation needed]

County Dublin is divided into four council areas: Dublin City Council, Dún-Laoghaire Rathdown, South Dublin and Fingal.

Transport

Aer Arann headquarters

Canals and ports

Ireland's two longest canals, the Royal Canal and the Grand Canal, meet in Dublin Bay. The Irish railway system radiates from Dublin run by Irish Rail. Similarly, a number of routes in the Irish road system spread outwards from Dublin. Dublin Port is Ireland's largest port facility, and has the deepest port on Ireland's East coast. The port of Dún Laoghaire is also located within the county.

Dublin Airport

Dublin Airport is the biggest and busiest in Ireland, with two terminals, handling almost 28 million passengers annually (as of 2016).[31] The Irish airlines Aer Arann, Aer Lingus, CityJet and Ryanair all have their own head office in Dublin.[32]

Rail

Heuston and Connolly stations are the two main railway stations in Dublin. Operated by Iarnród Éireann, the Dublin Suburban Rail network consists of five railway lines serving the Greater Dublin Area and commuter towns such as Drogheda and Dundalk in County Louth. One of these lines is the electrified Dublin Area Rapid Transit (DART) line, which runs primarily along the coast from Malahide and Howth southwards as far as Greystones.[33] Commuter rail operates on the other four lines using Irish Rail diesel multiple units. In 2013, passengers for DART and Dublin Suburban lines were 16 million and 11.7 million, respectively (around 75% of all Irish Rail passengers).[34]

The Luas is an electrified light rail system which has been operating since 2004 and carried over 30 million passengers annually (as of 2012).[35] The network consists of two tram lines; the Red Line links the Docklands and city centre with the south-western suburbs, while the Green Line connects the city centre with suburbs to the south of the city.[36]

Economic sectors

In 2005, around 800,000 people were employed in Greater Dublin, of whom around 600,000 were employed in the services sector and 200,000 in the industrial sector.[37]

Media

Dublin is the centre of both media and communications in Ireland, with a number of national newspapers, radio stations, television stations and telephone companies based there. RTÉ is Ireland's national state broadcaster, and is based in Donnybrook. TV3 Media, UTV Ireland, Setanta Sports, MTV Ireland and Sky News are also based in the city. The headquarters of An Post and telecommunications companies such as Eircom, as well as mobile operators Meteor, Vodafone and 3 are all located in the Dublin area. Dublin is also the headquarters of national newspapers such as The Irish Times, Irish Independent and The Herald.

Food and drink

Ireland's most widely known alcoholic drink, Guinness has been brewed at the St. James's Gate Brewery since 1759. The Guinness firm had established for providing the best pay and conditions in the Dublin area for many generations.[citation needed] Dublin also profited from the role of the beef industry, as the main export port for beef bound to Britain.[citation needed] Dublin did not feature prominently in the development of Irish dairy-farming, which was concentrated in Munster and south Leinster.

Information and communications technology

See also: Silicon Docks
One George's Quay Plaza at night (middle)

A number of IT companies are located in the city, including in the south inner area of Dublin 2, and the adjacent counties. Among these are Amazon, Ebay, Dell, Facebook, Zynga, Dropbox, LinkedIn, Indeed, Twitter, Google, EMC, Microsoft, Oracle, Fleetmatics, PayPal, SAP, Symantec, and Yahoo!. A number of these organisations have premises in the Silicon Docks area of the city.[citation needed]

The area surrounding Ireland's capital city has approximately 30 large-scale data centre operations,[citation needed] including global operations run by Google, Microsoft and Amazon.[citation needed] Companies involved in the cloud computing sector include Citrix, EMC2, Dropbox, Salesforce and Zendesk.[38]

Financial

There are 35,000 people working in the Financial services sector, contributing approximately €2 billion to the state.[citation needed] Many of these jobs are based at the International Financial Services Centre in Dublin.[citation needed] Also located in Dublin is the Irish Stock Exchange (ISEQ).

Retail

Ireland's largest retail and shopping centres are located in the Dublin area, including Dundrum Town Centre (140,000 square metres, 160 stores) and Blanchardstown Centre (120,000 square metres, 180 stores).[39][40] Within the city centre, the "prime retail streets" include Henry Street and Grafton Street.[41] A 2013 report, for Ibec and Retail Ireland, indicated that Dublin was the "main national hub of retail activity", accounting for 25% of the country's retail entities, and approximately 50% of national employment in the sector.[42]

Tourism

Several of Ireland's most visited tourist attractions are in the Dublin area, including the Guinness Storehouse (nearly 1.5 million visitors in 2015), Dublin Zoo (1.1m visitors in 2015), and the National Gallery of Ireland (in excess of 700,000 visitors).[43][44] As of 2013, the tourism sector was reputedly worth approximately of €1.4 billion to the economy of Dublin.[45][46]

Higher education

Higher education institutions contributed €10.6 billion to the national economy in 2011.[47] This included nearly €1 billion from international students,[48] where 57% of these international students are based in the Dublin region.[49] As a university city, several of the largest universities and colleges are located in the capital, including the largest (University College Dublin - UCD), and one of the oldest (Trinity College Dublin).[50] A 2014 study indicated that the three universities in Dublin (Dublin City University, Trinity College, and UCD) were among the top institutions for economic impact nationally.[51]

See also

References

  1. ^ Dellepiane, Sebastian, Hardiman, Niamh : Governing the Irish economy: a triple crisis. University College Dublin. Geary Institute, 2011-02-21. Available at: http://hdl.handle.net/10197/4931
  2. ^ (APA): Murphy, E., Redmond, D., McKnight, D., Crossa, V., Williams, B., & Moore, N. (2008). The creative knowledge economy in Dublin. Understanding the attractiveness of the metropolitan region for creative knowledge workers. (ACRE wp; No. 5.13). Amsterdam: AMIDSt, University of Amsterdam. ISBN 978-90-75246-80-3.
  3. ^ Hazelkorn, E., Murphy, C. (2002). The Cultural Economy of Dublin. In Corcoran, M. & Peillon, M.(eds) Sociological Chronicles Vol. 3.Dublin: Institute for Public Administration
  4. ^ Rashid, S. (1977). Richard Whately and Christian Political Economy at Oxford and Dublin. Journal of the History of Ideas, 38(1), 147-155. doi:10.2307/2708847
  5. ^ Frances, Ruane,; Holger, Görg. "The Impact of Foreign Direct Investment on Sectoral Adjustment in the Irish Economy". Journals.Sagepub. National Institute Economic Review. Retrieved 14 March 2018.{{cite web}}: CS1 maint: extra punctuation (link) CS1 maint: multiple names: authors list (link)
  6. ^ Frances, Ruane,; Holger, Görg. "The Impact of Foreign Direct Investment on Sectoral Adjustment in the Irish Economy". Journals.Sagepub. National Institute Economic Review. Retrieved 14 March 2018.{{cite web}}: CS1 maint: extra punctuation (link) CS1 maint: multiple names: authors list (link)
  7. ^ Breathnach, Proinnsias| Title=Globalisation, information technology and the emergence of niche, transnational cities: the growth of the call centre sector in Dublin|Publisher:Geoforum, Department of Geography, National University of Ireland, Maynooth County, Kildare, Ireland|Volume 31, Issue 4, 2000,Pages 477-485, ISSN 0016-7185, https://doi.org/10.1016/S0016-7185(00)00016-6.(http://www.sciencedirect.com/science/article/pii/S0016718500000166)
  8. ^ Punch, M. (2005), Problem Drug Use and the Political Economy of Urban Restructuring: Heroin, Class, and Governance in Dublin. Antipode, 37: 754–774. doi:10.1111/j.0066-4812.2005.00524.x
  9. ^ "Ireland Facts and Figures(2018)" (PDF). Government of Ireland Central Statistics Office. Central Statistics Office, Ireland. Retrieved 15 March 2018.
  10. ^ DJEI. (2015). Action Plan for Jobs 2015. Government Publications Office, Dublin. https://doi.org/10.1016/S0022-3913(12)00047-9.ISBN 066012128X,
  11. ^ https://www.irishtimes.com/business/economy/ireland-s-gdp-figures-why-26-economic-growth-is-a-problem-1.2722170
  12. ^ ISSN 1996-1073,www.mdpi.com/journal/energies,Review Biofuel Production in Ireland—An Approach to 2020 Targets with a Focus on Algal Biomass,Fionnuala Murphy 1, Ger Devlin 1,*, Rory Deverell 2 and Kevin McDonnell 1, doi:10.3390/en6126391
  13. ^ Journal of Economic Geography, Volume 11, Issue 5, 1 September 2011, Pages 793–816, https://doi.org/10.1093/jeg/lbq050 Published: 23 December 2010
  14. ^ https://www.bloomberg.com/quicktake/tax-inversion
  15. ^ https://www.economist.com/news/europe/21702232-why-gdp-growth-26-year-mad-not-full-shilling
  16. ^ https://www.theguardian.com/world/2017/aug/06/brexit-fuelled-boom-dublin-celtic-tiger-roars-again
  17. ^ https://teleport.org/cities/dublin/#people
  18. ^ https://books.google.com/books?hl=en&lr=&id=UI_psyz3TaQC&oi=fnd&pg=PA1&dq=economy+of+dublin&ots=vYcd8XdvL8&sig=j8XGGrtlr-z8CQM5kzdiHAReItQ#v=onepage&q=economy%20of%20dublin&f=false, ISBN 0-19-924331-X
  19. ^ http://www.thejournal.ie/average-incomes-2014-3300484-Mar2017/
  20. ^ "Richest Cities in the world". Citymayors.com. Retrieved 21 August 2010.
  21. ^ ""Dublin's Role in the Irish and Global Economy, 2012" (Dublin's Role)" (PDF). Ucd.ie. Retrieved 5 September 2015.
  22. ^ https://www.independent.ie/business/irish/dublin-ranks-high-on-rich-city-list-26812980.html
  23. ^ "Dublin falls in city-cost rankings". Irish Times. 12 July 2011. Retrieved 20 July 2011.
  24. ^ "Cost of Living in Ireland". Globe Media Ltd. 30 September 2015. Retrieved 30 September 2015.
  25. ^ https://www.irishtimes.com/news/social-affairs/dublin-ranked-as-one-of-world-s-most-expensive-cities-1.3292814
  26. ^ https://www.worldatlas.com/articles/which-are-the-richest-cities-in-europe.html
  27. ^ [1]
  28. ^ "County Incomes and Regional GDP 2014 - CSO - Central Statistics Office". Cso.ie.
  29. ^ https://www.irishtimes.com/business/economy/dublin-centric-development-unsustainable-warns-esri-1.3366029
  30. ^ https://www.irishtimes.com/business/economy/are-spiralling-dublin-rents-choking-its-economic-growth-1.3327866
  31. ^ "Chief Executive's Review". Annual Report 2016, daa plc (PDF) (Report). DAA (Dublin Airport Authority). 2016. p. 28.
  32. ^ "Aer Arann Contact Information". Aerarann.com. Archived from the original on 30 May 2012. Retrieved 21 August 2010. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  33. ^ "Transport in Dublin, Get Around Easily with". Dublin.ie. Retrieved 19 June 2016.
  34. ^ "Passenger Journeys by Rail by Type of Journey and Year - StatBank - data and statistics". Cso.ie. Retrieved 19 June 2016.
  35. ^ "Luas - Frequently Asked Questions". Luas.ie. 16 April 2012. Archived from the original on 3 January 2012. Retrieved 19 June 2016. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  36. ^ "Luas - Frequently Asked Questions". Luas.ie. 16 April 2012. Archived from the original on 3 January 2012. Retrieved 19 June 2016. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  37. ^ "Dublin Chamber of Commerce - Summary" (PDF). Archived from the original (PDF) on 7 February 2012. Retrieved 5 February 2016. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  38. ^ "Cloud Computing & FDI Opportunities with IDA Ireland". Idaireland.com. Retrieved 19 June 2016.
  39. ^ "Ireland's largest shopping centre has just been sold as part of biggest Nama deal ever". The Journal. 29 September 2015.
  40. ^ "Hammerson pays £1bn for Ireland's largest shopping centre". The Guardian. 8 July 2016.
  41. ^ "Dublin retail market review 2016". Irish Times. 15 February 2017.
  42. ^ "Strategy for Retail 2014-2016" (PDF). Retail Ireland. 2013.
  43. ^ "Report - Visitors to Top Free Visitor Attractions 2015" (PDF). Failte Ireland. Retrieved 26 June 2017.
  44. ^ "Report - Visitors to Top Fee-Charging Visitor Attractions 2015" (PDF). Failte Ireland. 26 June 2017.
  45. ^ "Economic Profile of Dublin - Dublin Facts & Figures". Dublin Chamber of Commerce. Retrieved 26 June 2017. Dublin attracted 3.9 million overseas visitors in 2013, generating €1.4 billion in revenue
  46. ^ "Tourism Now Worth Over €1bn To Dublin Economy". Business World. 5 August 2015.
  47. ^ "Irish higher education sector contributed €10.6 billion to the economy". TCD.ie. Retrieved 26 June 2017.
  48. ^ "International third-level students worth €900m to economy". Irish Examiner. 28 December 2012.
  49. ^ "Economic Profile of Dublin". Dublin Chamber of Commerce. Retrieved 26 June 2017.
  50. ^ "Higher education in Ireland: for economy and society?" (PDF). Oireachtas.ie. 2014. Retrieved 26 June 2017.
  51. ^ "Irish Higher Education Sector Is a Major Contributor to Economy". TCD.ie. 28 October 2014. Retrieved 26 June 2017.
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