IDEAS home Printed from https://ideas.repec.org/a/eut/journl/v21y2017i1p71.html
   My bibliography  Save this article

An Analysis of Economic Implications of the UK Leaving the EU

Author

Listed:
  • Parvez Azim

    (Foreign Faculty, University of Faisalabad, Islamabad, Pakistan.)

Abstract

Whether the United Kingdom (UK) should remain in the European Union (EU) or not has been a fiercely debated issue both before and after the referendum in the UK on June 23, 2016. The main purpose of this paper is to evaluate the pros and cons of the UK leaving the EU. It is concluded that if the UK leaves the EU, the resulting economic shock would risk adverse effects on macroeconomic variables such as foreign trade, high inflation, employment level, interest rate, aggregate supply and aggregate demand, trade creation and diversion, balance of payments, balance of trade, term of trade, depreciation of the pound sterling, rising consumer price index (CPI) and reduction in the standards of living in the UK. Effects of leaving the EU on money market, labour market and goods market in the UK have also been explored to show the effects on the exchange rate, the interest rate, nominal and real wages and output level in the UK. It has therefore been concluded that it is not in the best interest of the UK to leave the EU. Benefits of remaining in the EU far outweigh the disadvantages.

Suggested Citation

  • Parvez Azim, 2017. "An Analysis of Economic Implications of the UK Leaving the EU," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(1), pages 71-83, Winter.
    • Handle: RePEc:eut:journl:v:21:y:2017:i:1:p:71
    as

    Download full text from publisher

    File URL: ftp://80.66.179.253/eut/journl/20171-4.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eut:journl:v:21:y:2017:i:1:p:71. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: [z.rahimalipour] (email available below). General contact details of provider: https://edirc.repec.org/data/fecutir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.