a changing world ” speech delivered at the dublin economics workshop, 13th september 2019. [ 35 ] house prices come from esri / ptsb house price index. [ 36 ] central bank of ireland ( 2019 ). household credit market report. ( 23 october 2019 ) [ 37 ] donnery, sharon, fitzpatrick, trevor, greaney, darren, mccann, fergal & o ’ keeffe, micheal ( 2018 ). “ resolving nonperforming loans in ireland : 2010 - 2018 ”, central bank of ireland, signed article, quarterly bulletin 2018 : 02 [ 38 ] sibley, ed ( 2019 ). " building financial resilience " speech delivered at the mabs national conference 5th november 2019. ©2019 central bank of ireland

fdi inflows into ireland originates in the united states : in 1998, 41 % of all foreign - owned manufacturing firms in ireland were from the us. between 1994 and 1998, annual inflows of manufacturing fdi from the us amounted to around 1½ % of irish gdp. indeed, ireland receives a large share of all us fdi. for example, in 1998, ireland received 7 % of all us manufacturing inflows into the eu, a not insignificant proportion for a country with around 1 % of the eu gdp. the success which various foreign multinationals have enjoyed has encouraged others to establish manufacturing bases in ireland. as a result, agglomeration economies have developed over time : success has bred success. in more recent years, the manufacturing economy has benefited from what is known as “ distance independence ” - transports costs as a percentage of output value have fallen substantially for high - technology outputs such as software and chemicals. this has significantly reduced ireland ’ s peripheral location disadvantage. a number of implications arise from this policy of targeting high - technology fdi. firstly, a sharp dichotomy has emerged within the industrial sector between the relatively low value - added traditional sector which produces largely for the domestic and uk markets, and the more dynamic higher valueadded technology sector, which produces primarily for the rest of the eu and us markets. this dichotomy is most apparent in the productivity data, with the high - technology sector being an estimated five times more productive than the traditional sector. secondly, in ireland, the relative importance of the industrial sector has been rising in recent years, albeit at a moderate rate. this situation contrasts strongly with the experience of other advanced economies, where the industrial sector has been in relative decline for some time. eu financial support i should also mention that the various financial support mechanisms of the european union - the structural funds and the cohesion funds - have been of assistance in adapting to the new economic structures and in financing infrastructural development. these supports have averaged around 2¼ % of gdp since 1989, and have been in relative decline during the past six to seven years of strong economic growth. indeed, it has been argued that the impact of the structural fund process on the administrative and political system has been at least as important as the investment itself. in particular, transfers under the community support framework encouraged the government to raise public investment from its extremely low level in the 1980s. finally, transfers to the agricultural sector under the common agricultural