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Abstract:

Journal article
UK trade and FDI: A post-Brexit perspective
Swati Dhingra, Gianmarco Ottaviano, Veronica Rappoport, Thomas Sampson and Catherine Thomas March 2018
Paper No' :


Tags: brexit; uk trade; uk fdi; negotiations

Leaving the EU will reshape the UK's economic relations with the rest of the world. This paper summarizes the findings of recent research studying the UK's role in the global economy, and the consequences of Brexit for UK trade, investment, and living standards. We emphasize that international integration affects investment and labour flows as well as trade in goods and services. There are important interdependencies between different forms of integration that should be accounted for when evaluating policy changes. Brexit is likely to make the UK poorer by reducing trade and investment flows, but the magnitude of the economic decline will depend upon the nature of the UK's post-Brexit economic relations with the EU and the rest of the world. We conclude by considering options for UK-EU relations after Brexit and how the UK should approach future trade negotiations.