To what extent were economic factors important in the separation of the south of Ireland from the United Kingdom and what was the economic impact?

William Hynes

Cambridge Journal of Economics, 2014, vol. 38, issue 2, 369-397

Abstract: The impact of British rule casts a long shadow over Irish history. While nationalist historians tended to blame Union with Britain for all the economic ills of the 19th century (O’Brien, 1921), recent re-evaluations of both historical and recent Irish economic performance have been cause for a reappraisal of the economic relations between Ireland and Britain (Cullen, 1969; Kennedy and Johnson, 1996). The extent to which economic factors were important in Ireland’s withdrawal from the United Kingdom will be examined in this paper. A secondary aim is to assess the economic consequences of independence in the interwar period. There were many economic reasons up to 1913 as to why Ireland should separate. UK policy was determined by majority voting and policies were suited to the needs of industrial workers in Britain, rather than agricultural workers in Ireland. This led to increased spending beyond the means of Ireland which caused transition difficulties on independence. Finally the consequences of separation in the north and south of Ireland are examined. Evidence suggests that separation led to short term economic difficulty. In the longer run the south benefited from independence due to weakness in British institutions and the incentive structures created during the interwar period.

Date: 2014
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