Post-Brexit Irish cross-border trade economically more important: ESRI

Though some earlier studies had concluded less cross-border trade between Ireland and Northern Ireland than what was suggested by economic models, the new analysis indicates that position has been reversed since Brexit.

Investigating the role of distance and market size as determinants of trade flows, the research finds high levels of trade integration across the border.

At a sectoral level, both Northern Ireland and Ireland have relatively high concentrations of trade in the chemicals and pharmaceuticals sector.

A much wider variety of goods is traded across the border compared to the highly concentrated nature of broader international trade in both economies, it found.

While sales and purchases with Great Britain account for the largest proportion of Northern Ireland’s external sales, its international trade (i.e., excluding Great Britain) is heavily concentrated in cross-border trade with Ireland.

Ireland purchased 53 per cent of total Northern Ireland exports and accounted for almost 35 per cent of Northern Ireland’s imports.

The next most important export partner for Northern Ireland is Germany, accounting for 15 per cent of total exports.

“Both Ireland and Northern Ireland have policy priorities of developing international markets and supporting domestic firms to export. Cross-border trade can play a role as an accessible first step into broader exporting and this new data on trade patterns may help in the development of such policies,” Martina Lawless, one of the report’s authors, commented.

Fibre2Fashion News Desk (DS)