Exploration Of Factors That Might Explain The Level Of North/south Trade

The recent study of North/South trade flows by InterTradeIreland showed that trade is below that expected. This study goes further in exploring some possible explanations for this gap between expected and actual North/South trade. The two factors which have been looked at are the differences in the sectoral structure of the two economies on the island of Ireland and the level of foreign direct investment (FDI) in different sectors and how this affects trade patterns. Once these factors are taken account of the real gap between actual and expected North/South trade volumes is considerably closer.