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The Comparative Performance of Business Services in Northern Ireland and the Republic of Ireland

Department of Economics, Queen's University of Belfast, Belfast, BT7 INN, Northern Ireland, UK

P.N. O'Farrell

Department of Economics, Heriol-Wall Universily, P.O. Box 807, Ric carton, Edinburgh, EH14 4AT, Scotland, UK

C.D. Conway

Department of Economics, University of Durham, Old Shire Hall, Durham, DHl 3HP, England, UK

Comparisons are made between firms in five business service industries located in the two parts of Ireland. The focus is on explaining the differential performance of the business services sector in the two areas. Matched comparisons show independent offices grow at the same rate though Rol sample firms are characterised by higher charge-out rates and higher sales per head. Comparisons of supply-side characteristics show few differences in the basic capability of firms. Attention is drawn to the dependence of the industry on Irish demand and the low level of cross-border trade. Consideration is given to how to increase trade between NI and the Rol and to increase the competitive advantages of firms in order to penetrate markets outside Ireland. Future opportunities for the sector are considered in the light of the outbreak of peace and deeper cross-border integration.

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