Sustainable ways to increase national income in the Irish economy

Components of National Income

The Irish economy has experienced a unique period in its history. Initially the economy forged ahead during the Celtic Tiger period from the mid-1990s to the mid-2000s.  Next, the economy underwent a dramatic reversal of fortunes from 2008, when it was hit hard by international developments but also by flawed domestic policies. Yet, since 2014, the Irish economy has been recovering at an unprecedented pace, particularly driven by foreign direct investment. 2018 was a bumper year by most measures, but then 2020 brought new and unexpected challenges. The future outlook is difficult to predict – will national income grow? Will international developments halt or indeed reverse the progress that has been made?  What might offer the best chance of sustainable growth in national income into the future?  

This project requires you to play the role of economic advisor to the Government.  You will work in groups to develop an economic consultancy report on identifying sustainable ways of increasing national income in the Irish economy. In conducting your analysis, you may provide a general commentary or you may select one or more sectors of the economy.This is entirely up to you.In particular, you need to analyse the components of National Income Consumption, Investment, Government, Exports and Imports. You are required to consider each component and its contribution to overall National Income. You must also appraise each component – how risky or otherwise is it in the international context – in other words, is it a reliable component of growth in the long run or could it be reversed and what may cause this.

In your report, you need to demonstrate your understanding of:
-    The components of national income 
-    The difficulties of using GDP as a measure of national income in Ireland 
-    The international macro environment and its significance for a small open economy like Ireland
-    The impact on employment and any other relevant macroeconomic variable on the measures discussed.

Following the above analysis, you are required to provide summary conclusions and recommendations from your research This report requires each group to identify the current trends in the key macroeconomic variables we have discussed in class, such as: inflation, economic growth, unemployment, exchange rates, interest rates, etc., and discuss the likely consequences for the Irish/international economic environment arising from monetary and fiscal policy for the short and medium term. In addition you should discuss in specific terms the implications that this environment will have for the chosen sector, making reference to appropriate national income measures. Marks will be awarded for use of appropriate models and theories in your discussion. 

Submission Details :
This project is deliberately broad in its scope.  Marks will be awarded for analysis, clarity, research and the strength of conclusions and recommendations.A solid knowledge of current developments and their impact on the Irish economy needs to be demonstrated.  

Word count = max. 3,000 words
Submission deadline: Friday, Feb 28th 2021.
A link will be made available on Moodle for submission of the group report (only one member of the group need submits on behalf of all the group). 

Presentation (40%)
The remaining 40% assessment for this module will take the form of an individual presentation. The presentation will be based on the group report but will be delivered individually. Presentations will be 10 minutes in duration and 5 minutes will be allotted at the end for questions. Presentations will take place online during class time in Weeks 12 and 13. A link will be made available on Moodle for submission of any presentation slides.