Shock and Absorption Capacity of Firms in Ireland and Northern Ireland. InterTradeIreland, 2017

Author, No (2017) Shock and Absorption Capacity of Firms in Ireland and Northern Ireland. InterTradeIreland, 2017. [Working Paper]

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Abstract

This report examines how the capacity of firms to absorb shocks can be assessed using detailed firm-level patterns of risk exposure across Ireland and Northern Ireland. Although we cannot make predictions on the response to cost or demand shifts for any individual firm, we can provide a broad sense of exposures by looking at combinations of some of the main measurable factors that determine firm performance and flexibility. Combining our shock absorption capacity indicators with information on cross-border and EU trade flows provides insight into how dispersed across firms a post-Brexit shock to trade costs might be. It also reveals the extent to which this might be clustered in firms that have varying abilities to deal with changes in their external environment.

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