Abstract: What effect does political instability in the form of a potential secession from a political union have on business formation? Using newly collected data on business creation, we show that entrepreneurial activity in Ireland in the late nineteenth century was much lower than Scotland, and this divergence fluctuated over time. Several factors may have contributed to this, but we argue that political uncertainty about the prospect of a devolved government in Ireland played a role. The effects were most acute in the North of Ireland, the region that was most concerned by potential changes.
Keywords: Ireland, Scotland, Home Rule, entrepreneurship, political risk
Lay summary: It is not a stretch to suggest that political unrest can undermine confidence in an economy, as recent events demonstrate. What is more challenging is measuring the impact of various kinds of unrest on different elements of the economy. This article compares Ireland to Scotland in the late-nineteenth century, at a time when the Home Rule movement in Ireland was undermining what had been the political status quo. It argues that the ongoing political turmoil discouraged entrepreneurship and hindered economic growth, particularly in the North of Ireland where opposition to Home Rule was greatest.
Cite this article:
Robin J.C. Adams, Gareth Campbell, Christopher Coyle, John D. Turner, ‘Business Creation and Political Turmoil: Ireland versus Scotland before 1900’, Business History Review, Volume 96, Issue 4, Winter 2022, pp. 709 – 739,
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