Economics of Brexit

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 […]

  • Permalink Endeavour, Thomas Luny 1768. C00 Public DomainGallery

    Britain can once again be the master of its own trading destiny

Britain can once again be the master of its own trading destiny

Wherever one stands on the question of Brexit, it undoubtedly presents opportunities, denied to Britain for almost half a century, to embrace its historic role as a global trading power. Britain can once again be the master of its own trading destiny, argues George Brandis QC (Australian High Commissioner).

A short distance from Australia House on the Strand, a commemorative plaque marks […]

Inflation at 3.5% and a two-year recession: the impact of no deal

We hear a great deal about the risks of a no-deal Brexit, but what would the economic effect really be? Ana Boata (Euler Hermes) and Michael Heise (Allianz) look at the economic hit the UK has already suffered as a result of Brexit and forecast the likely effect of a disorderly departure in March, as well as the impact […]

Neglected options for a Brexit deal in the UK

Even the government’s preferred deal gives us no idea of the trade and investment arrangements after the transition period. Yet it – or no deal at all – appear to be the only options on offer. Andrew Hughes Hallett (George Mason University and the University of St Andrews) looks at the impact they would have on the UK economy, […]

Voting with their money: Brexit and outward investment by UK firms

Are firms moving investment abroad because of Brexit? Holger Breinlich, Elsa Leromain, Dennis Novy and Thomas Sampson (LSE) use a ‘doppelganger method’ to estimate how foreign direct investment would have evolved without the vote for Brexit. They find a 12% increase in the number of new investments made by UK firms in EU countries, and an 11% fall in […]