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

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.