A new study has mapped-out the potential economic impact that a united Ireland would have...
A new study to be launched today claims unification of the Republic of Ireland and Northern Ireland could lead to a significant boost for both economies.
According to the report, 'Modeling Irish Unification' which was published by KLC Consulting in Canada, political and economic unity in the island of Ireland could bring a collective GDP of €35.6bn in the first eight years.
The study included the harmonisation of the tax system and the reduction of trade barriers as well as the scrapping of transaction costs between Northern Ireland and the Republic. It highlighted “currency, trade and tax barriers” as factors slowing Northern Irish growth. The state would also face a reduction in administrative costs.
The study also suggests that wage increases would be higher in Northern Ireland. The modeling included Northern Ireland joining of the euro zone.
This research factored in production, consumption, wages, price, exports and imports, and economic output factors.
It was based on research of similar cases of unification in Germany.
Dr Kurt Hubner, professor at the University of British Columbia and author of the study, says unification would boost trade on both sides of the border:
"But our study underlines the potential of political and economic unification when it is supported by smart economic policy," he added.