NI-RoI economic links to be examined by think tank project

The project could be used to inform the debate about the potential economic consequences of a united Ireland

Two leading think tanks have started a project to improve understanding of the economic links between Northern Ireland and the Republic of Ireland.

The work involves Dublin's Economic and Social Research Institute (ESRI) and the UK's National Institute of Economic and Social Research (NIESR).

It could be used to inform the debate about the potential economic consequences of a united Ireland.

The project will develop a statistical macroeconomic model for NI.

Economic models are tools which can help us to understand an economy and estimate the impact of different policies.

They generally consist of a set of mathematical equations that describe a theory of economic behaviour.

Economists can then plug data into the model to get projections of how the economy will perform in different circumstances.

Prof Alan Barrett, director of the ESRI, said: "When you have a model it allows you to do an awful lot."

He gave the example of Brexit where ESRI's model of the Irish economy could be used be estimate how trade impacts would then effect jobs and tax revenues.

He said that the process of creating the model would also improve understanding of the Northern Ireland economy.

Paul Mortimer-Lee, deputy director of NIESR, says it's clear better policies are needed in Northern Ireland

Prof Barrett said the intention was to "put the best information possible into the public arena" to inform public debate and political decisions.

The project also aims to link the Northern Ireland model with ESRI's model of the Irish economy, which is known as Cosmo, and NIESR's UK model which is called NiGEM.

This should lead to a better understanding of how policies in each of those economies will impact Northern Ireland.

Paul Mortimer-Lee, deputy director of NIESR, said the work could also play a part in tackling Northern Ireland's economic underperformance.

"The aim is to understand developments better but mainly to help policymakers devise better policies," he said.

"It's clear better policies are needed in Northern Ireland."

The project is being supported by Ibec, the Irish employers' organisation.

Danny McCoy, chief executive of Ibec, said a model would help remove some of the guesswork from understanding cross border linkages.