Brexit Referendum and Business Investment in the UK
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Summary:
In this paper I apply firm-level analysis to examine how the Brexit process has affected business investment in the UK. An interaction term of potential trade costs after exiting the EU and a measure of firms’ participation in global trade is used as a proxy for firm-level exposure to Brexit-related effects. The results suggest that potential trade costs have had a considerable and statistically significant negative impact on firm investment in the UK after the referendum. At the same time, the post-referendum sterling depreciation has likely contributed positively to investment expenditure by more foreign-oriented firms.
Series:
Working Paper No. 2018/247
Subject:
International trade National accounts Private investment Trade policy
English
Publication Date:
November 21, 2018
ISBN/ISSN:
9781484382011/1018-5941
Stock No:
WPIEA2018247
Pages:
20
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