Economics of Brexit

Why the EU-Japan trade deal matters for Brexit

The EU-Japan Economic Partnership Agreement entered into force at the start of this month, but it is unclear whether the UK can retain the benefits of the agreement after it leaves the EU. Han Dorussen writes that the UK risks being excluded from what Brexiteers want: a free trade area ‘beyond Europe’ and greater ‘global influence’.

On February 1st, the EU-Japan […]

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    UK economy since the Brexit vote: slower GDP growth, lower productivity, and a weaker pound

UK economy since the Brexit vote: slower GDP growth, lower productivity, and a weaker pound

Evidence of the UK’s economic performance since the EU Referendum is clear: GDP growth has slowed down, productivity has suffered, the pound has depreciated and purchasing power has gone down, and investments have declined. In this blog, Josh De Lyon and Swati Dhingra (LSE Centre for Economic Performance) argue that the impact of the Brexit vote on the health of […]

Manufacturing workers were especially likely to support Brexit

What socio-economic characteristics were associated with a Leave vote? Leonardo S. Alaimo (far left) and Luigi M. Solivetti (Sapienza University of Rome) use Local Government District data and find that voters with GCSE-level education, and manufacturing workers in particular, were most likely to support Brexit.

Uncertainties still remain about what drove the Leave vote in the EU referendum. Our research […]

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    Germany will not allow Brexit to compromise EU core principles 

Germany will not allow Brexit to compromise EU core principles 

The powerful role of German business was brought into the Brexit debate during the referendum campaign by Leave campaigners as they brushed off predictions of hampered trade with the EU in a post-Brexit world. They argued that German carmakers would surely make their interests heard. But as John Ryan (LSE) argues, this did not happen and Germany will not […]

Is Brexit a contest between low-earning Leavers and high-earning Remainers?

A common interpretation of Brexit maintains that there was a clear divide between more affluent and less well-off citizens when it came to supporting EU membership. Is this backed up by the available evidence? Mathias Koenig-Archibugi and Miriam Sorace (LSE) present a new way of looking at the question.

A popular narrative of Brexit pits “working-class Leavers” against “middle-class […]

Brexit poses major risks to social policy in the UK

Kitty Stewart (LSE) looks at the implications of Brexit for health, education and housing, as well as workers’ rights, and concludes that it poses major risks to  social policy. While some of these may have been apparent to voters, it is difficult to imagine that they anticipated the scale and breadth of some of the less direct effects.

What will Brexit […]

How Brexit has hit the value of UK firms

Paula Hill, Adriana Korczak and Piotr Korczak (University of Bristol) analyse which firms and sectors have been most affected by the political uncertainty associated with Brexit. They discuss how those results can help understand corporate decisions made since the referendum.

As of early March 2019, we still do not know the terms on which Britain will leave the EU, and […]

What are the prospects for UK trade with Australia and New Zealand?

The UK would like to export more to Australia and New Zealand after Brexit. Malcolm Abbott (Swinburne University of Technology) looks at the history of trade between the three countries and the prospects for growth in the future.

How might the UK increase its trade and other economic links with parts of the world outside the Union after Brexit? Among […]

How the EU’s Capital Markets Union could fare without the City

London was to have played a central role in the EU’s Capital Markets Union, which was launched by a British commissioner. Andy Mullineux (Lloyds Banking Group Centre for Responsible Business, University of Birmingham) explains the purposes of the project and why the UK’s departure could lead to a fragmentation of capital markets.

In preparation for Brexit, banks and other financial […]

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    The European Investment Bank is becoming increasingly politicised

The European Investment Bank is becoming increasingly politicised

The European Investment Bank (EIB) is intended to provide finance and expertise for investment projects that further EU policy objectives. But as Daniel Mertens and Matthias Thiemann explain, a steady expansion of the bank’s operations over the last two decades has prompted greater political debate over its governance and activities. They highlight three recent developments that underline this politicisation […]