Cross-border and local cooperation on the island of Ireland : an economic perspective

Revised version of a paper presented at a study group meting in Newry, 13 September 2005, as part of the programme Mapping frontiers, plotting pathways: routes to North-South cooperation in a divided island.Cross-border and local cooperation can foster local learning and contribute positively to business performance and social cohesion. This paper considers firms’ economic motivation for both types of cooperation around the Irish border. This area, while inevitably impacted by civil unrest in Northern Ireland, shares many of the economic and developmental characteristics of border areas throughout Europe. Simultaneous probit models are used to examine the determinants of cooperation. Overall, around a third of firms in the Republic of Ireland and Northern Ireland engage in local cooperation of some form; around one in six in Northern Ireland and one in twelve in the Republic of Ireland also engage in cross-border cooperation. Proximity to the border, perceived barriers to cross-border cooperation and country uncertainty reduce the incidence of cross-border cooperation rates below that of local cooperation. Cross-border cooperation in Northern Ireland is more common because of small region size and fewer perceived barriers to cross-border cooperation.Not applicableke - AL 06/07/201