IDEAS home Printed from https://ideas.repec.org/a/cup/nierev/v261y2022ip48-78_4.html
   My bibliography  Save this article

Political Economy Of Secession: Lessons From The Early Years Of The Irish Free State

Author

Listed:
  • Kenny, Seán
  • McLaughlin, Eoin

Abstract

We apply insights from the political economy of secession to analyse the early years of the Irish Free State (IFS). The IFS was fortuitous in a debt settlement that enabled it to begin its existence debt free while also receiving financial assistance to quell civil unrest. Yet the IFS was unable to continue to provide the welfare spending inherited from the old regime thereby exacerbating inequality. The IFS also maintained a sterling peg, which led to a milder experience of the depression era. Ultimately, however, the benefits of independence were not forthcoming in the early years of the IFS.

Suggested Citation

  • Kenny, Seán & McLaughlin, Eoin, 2022. "Political Economy Of Secession: Lessons From The Early Years Of The Irish Free State," National Institute Economic Review, National Institute of Economic and Social Research, vol. 261, pages 48-78, August.
    • Handle: RePEc:cup:nierev:v:261:y:2022:i::p:48-78_4
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0027950122000278/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Foley-Fisher, Nathan & McLaughlin, Eoin, 2016. "Sovereign debt guarantees and default: Lessons from the UK and Ireland, 1920–1938," European Economic Review, Elsevier, vol. 87(C), pages 272-286.
    2. Alberto Alesina & Enrico Spolaore, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1027-1056.
    3. Enrico Spolaore & Alberto Alesina & Romain Wacziarg, 2000. "Economic Integration and Political Disintegration," American Economic Review, American Economic Association, vol. 90(5), pages 1276-1296, December.
    4. de Bromhead, Alan & Fernihough, Alan & Hargaden, Enda, 2020. "Representation of the People: Franchise Extension and the “Sinn Féin Election” in Ireland, 1918," The Journal of Economic History, Cambridge University Press, vol. 80(3), pages 886-925, September.
    5. Patrick Honohan & Cormac Ó Gráda, 1998. "The Irish macroeconomic crisis of 1955-56 : how much was due to monetary policy," Open Access publications 10197/463, School of Economics, University College Dublin.
    6. Bolton, Patrick & Roland, Gerard & Spolaore, Enrico, 1996. "Economic theories of the break-up and integration of nations," European Economic Review, Elsevier, vol. 40(3-5), pages 697-705, April.
    7. Patrick Bolton & Gérard Roland, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1057-1090.
    8. Broadberry,Stephen & Harrison,Mark (ed.), 2005. "The Economics of World War I," Cambridge Books, Cambridge University Press, number 9780521852128, October.
    9. P. Honohan, 1997. "Currency board or central bank? Lessons from the Irish pound’s link with sterling, 1928-79," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 50(200), pages 39-67.
    10. Eichengreen, Barry & Sachs, Jeffrey, 1985. "Exchange Rates and Economic Recovery in the 1930s," The Journal of Economic History, Cambridge University Press, vol. 45(4), pages 925-946, December.
    11. Easterly, William & Rebelo, Sergio, 1993. "Fiscal policy and economic growth: An empirical investigation," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 417-458, December.
    12. Nathan Foley-Fisher & Eoin McLaughlin, 2014. "State dissolution, sovereign debt and default:Lessons from the UK and Ireland, 1920-1938," Working Papers 0061, European Historical Economics Society (EHES).
    13. Peter Lindert, 2004. "Social Spending and Economic Growth," Challenge, Taylor & Francis Journals, vol. 47(4), pages 6-16.
    14. Barry Eichengreen, 1992. "The origins and nature of the Great Slump revisited," Economic History Review, Economic History Society, vol. 45(2), pages 213-239, May.
    15. Richard C. Marston, 1988. "Introduction to "Misalignment of Exchange Rates: Effects on Trade and Industry"," NBER Chapters, in: Misalignment of Exchange Rates: Effects on Trade and Industry, pages 1-8, National Bureau of Economic Research, Inc.
    16. Nicholas Crafts, 2014. "What Does the 1930s' Experience Tell Us about the Future of the Eurozone?," Journal of Common Market Studies, Wiley Blackwell, vol. 52(4), pages 713-727, July.
    17. Charles Bean, 1988. "Sterling Misalignment and British Trade Performance," NBER Chapters, in: Misalignment of Exchange Rates: Effects on Trade and Industry, pages 39-76, National Bureau of Economic Research, Inc.
    18. Atish R. Ghosh & Anne-Marie Gulde & Holger C. Wolf, 2000. "Currency boards: More than a quick fix?," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 15(31), pages 270-335.
    19. Rebecca Stuart, 2019. "UK shocks and Irish business cycles, 1922–79," Economic History Review, Economic History Society, vol. 72(2), pages 618-640, May.
    20. Robert J. Gordon, 2012. "Is U.S. Economic Growth Over? Faltering Innovation Confronts the Six Headwinds," NBER Working Papers 18315, National Bureau of Economic Research, Inc.
    21. Gerlach, Stefan & Stuart, Rebecca, 2014. "Money, Interest Rates and Prices in Ireland, 1933-2012," CEPR Discussion Papers 9961, C.E.P.R. Discussion Papers.
    22. William Hynes, 2014. "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?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 38(2), pages 369-397.
    23. Joe Durkan, 2010. "Seán Lemass and the Nadir of Protectionism," The Economic and Social Review, Economic and Social Studies, vol. 41(3), pages 269-282.
    24. Foley-Fisher, Nathan & McLaughlin, Eoin, 2016. "Capitalising on the Irish land question: land reform and state banking in Ireland, 1891–1938," Financial History Review, Cambridge University Press, vol. 23(1), pages 71-109, April.
    25. Gramh Brownlow, 2010. "Fabricating Economic Development," The Economic and Social Review, Economic and Social Studies, vol. 41(3), pages 301-324.
    26. Foreman-Peck, J S, 1979. "Tariff Protection and Economies of Scale: The British Motor Industry before 1939," Oxford Economic Papers, Oxford University Press, vol. 31(2), pages 237-257, July.
    27. Drea, Eoin & Barry, Frank, 2021. "A reappraisal of Joseph Brennan and the achievements of Irish banking and currency policy 1922–1943," Financial History Review, Cambridge University Press, vol. 28(1), pages 45-66, April.
    28. Nevin, Edward, 1962. "Public Debt and Economic Development," Research Series, Economic and Social Research Institute (ESRI), number GRS11.
    29. Eoin McLaughlin, 2015. "Economic Impact of the Irish revolution," Discussion Papers in Environment and Development Economics 2015-13, University of St. Andrews, School of Geography and Sustainable Development.
    30. Drea, Eoin, 2014. "The Bank of England, Montagu Norman and the internationalisation of Anglo-Irish monetary relations, 1922–1943," Financial History Review, Cambridge University Press, vol. 21(1), pages 59-76, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kenny, Sean, 2024. "Irish GDP since independence," QUCEH Working Paper Series 24-05, Queen's University Belfast, Queen's University Centre for Economic History.
    2. Kenny, Seán, 2024. "Irish GDP Since Independence," Lund Papers in Economic History 258, Lund University, Department of Economic History.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michel Le Breton & Shlomo Weber, 2003. "The Art of Making Everybody Happy: How to Prevent a Secession," IMF Staff Papers, Palgrave Macmillan, vol. 50(3), pages 1-4.
    2. FitzGerald, John & Kenny, Seán, 2018. "Managing a Century of Debt," Lund Papers in Economic History 171, Lund University, Department of Economic History.
    3. Fidrmuc, Jan, 2015. "Political economy of fiscal unions," European Journal of Political Economy, Elsevier, vol. 40(PA), pages 147-157.
    4. Filippo Gregorini, 2007. "Political Geography and Income Inequalities," DISCE - Quaderni dell'Istituto di Teoria Economica e Metodi Quantitativi itemq0746, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    5. Enrico Spolaore, 2016. "The economics of political borders," Chapters, in: Eugene Kontorovich & Francesco Parisi (ed.), Economic Analysis of International Law, chapter 1, pages 11-43, Edward Elgar Publishing.
    6. Rohner, Dominic & Esteban, Joan & Flamand, Sabine & Morelli, Massimo, 2018. "A Dynamic Theory of Secession," CEPR Discussion Papers 12398, C.E.P.R. Discussion Papers.
    7. Grégoire Rota Graziosi, 2004. "La fragmentation politique, une revue de la littérature," Revue Française d'Économie, Programme National Persée, vol. 18(4), pages 193-223.
    8. Michele Ruta, 2005. "Economic Theories of Political (Dis)integration," Journal of Economic Surveys, Wiley Blackwell, vol. 19(1), pages 1-21, February.
    9. Baskaran, Thushyanthan, 2009. "Supranational Integration And National Reorganization," MPRA Paper 21597, University Library of Munich, Germany.
    10. Joan-Maria Esteban & Sabine Flamand & Massimo Morelli & Dominic Rohner, 2018. "The Survival and Demise of the State: A Dynamic Theory of Secession," Working Papers 1028, Barcelona School of Economics.
    11. Enrico Spolaore, 2010. "Federalism, Regional Redistribution and Country Stability," Chapters, in: Núria Bosch & Marta Espasa & Albert Solé Ollé (ed.), The Political Economy of Inter-Regional Fiscal Flows, chapter 13, Edward Elgar Publishing.
    12. Enrico Spolaore, 2009. "National Borders, Conflict and Peace," CESifo Working Paper Series 2860, CESifo.
    13. Alesina, Alberto & Spolaore, Enrico, 2006. "Conflict, defense spending, and the number of nations," European Economic Review, Elsevier, vol. 50(1), pages 91-120, January.
    14. Alesina, Alberto & Spolaore, Enrico, 2005. "War, peace, and the size of countries," Journal of Public Economics, Elsevier, vol. 89(7), pages 1333-1354, July.
    15. Simon Hug, 2003. "The State That Wasn't There," European Union Politics, , vol. 4(1), pages 121-134, March.
    16. Thushyanthan Baskaran, 2010. "Supranational integration and national reorganization: On the Maastricht treaty’s impact on fiscal decentralization in EU countries," Constitutional Political Economy, Springer, vol. 21(4), pages 309-335, December.
    17. Yutao Han & Zhen Song, 2022. "On regional integration, fiscal income, and GDP per capita," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(5), pages 506-532, November.
    18. Ansolabehere, Stephen & Puy, M. Socorro, 2022. "Constitutions, federalism, and national integration," European Economic Review, Elsevier, vol. 148(C).
    19. Yutao Han & Zhen Song, 2017. "On regional integration, fiscal income, and GDP per capita," CEMA Working Papers 600, China Economics and Management Academy, Central University of Finance and Economics.
    20. Enrico Spolaore & Alberto Alesina & Romain Wacziarg, 2000. "Economic Integration and Political Disintegration," American Economic Review, American Economic Association, vol. 90(5), pages 1276-1296, December.

    More about this item

    JEL classification:

    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N44 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: 1913-

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:nierev:v:261:y:2022:i::p:48-78_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://edirc.repec.org/data/niesruk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.