IMPACT OF GLOBALIZATION ON THE MACROECONOMIC INDICATORS: CASE OF IRELAND

Globalization, as now understood, is a centuries old phenomenon of growing interaction between national economies. In recent decades, the phenomenon has gained a new momentum, because of political developments and progress in information and communication technology. The traditional interrelations, e.g. in closely connected financial markets, have grown considerably. At the same time there has been a deepening of globalization through, for example, international value added chains. This influenced the development of macroeconomic indicators especially in small open countries, but the greatest attention of economists and wider public was attracted by the revision of Irish national accounts and balance of payments in July 2016. Consistent application of new rules for capturing economic transactions in combination with movement of several global companies with the whole balance sheets to Ireland caused unprecedented increase of Irish GDP. It raised a lot of questions about the interpretation of the newly published figures.