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The Impact of ‘Brexit’ on Japanese International Trade in EU

Author

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  • Yutaka Kurihara

    (Professor of International Economics and Finance Department of Economics, Aichi University 4-60-6 Hiraike Nakamura Nagoya Aichi 453-8777 Japan)

Abstract

Brexit is an abbreviation for “British exit,†meaning the United Kingdom’s (UK’s) decision on June 23, 2016, to leave the European Union (EU). The national vote’s result surprised global markets and caused immediate turmoil. As the UK has a large and traditional financial market and is a gateway to the EU for international investment and trade, people have much fear, which has caused serious recession all over the world. Japan, which has taken advantage of the relationship between Japan and UK and between the UK and EU, is not an exception. This paper examines the impact of Brexit on Japanese activity in the UK and EU. The gravity model of international trade was employed for empirical analysis. This model states that bilateral trade flows based on the economic sizes and distances between two units can be used to examine reasons for international trade. Empirical analysis in this paper indicates that Brexit has impacted Japanese international trade considering the relationship between the UK and EU.

Suggested Citation

  • Yutaka Kurihara, 2017. "The Impact of ‘Brexit’ on Japanese International Trade in EU," Business, Management and Economics Research, Academic Research Publishing Group, vol. 3(6), pages 57-61, 06-2017.
  • Handle: RePEc:arp:bmerar:2017:p:57-61
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    References listed on IDEAS

    as
    1. Lannoo, Karel, 2016. "EU Financial Market Access after Brexit," ECMI Papers 11876, Centre for European Policy Studies.
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    5. Karel Lannoo, 2016. "EU Financial Market Access after Brexit," CEPS Papers 11876, Centre for European Policy Studies.
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    9. repec:eme:ceftpp:jcefts-11-2016-0032 is not listed on IDEAS
    10. Richard Kneller & Mauro Pisu, 2004. "Export-oriented FDI in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 20(3), pages 424-439, Autumn.
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    Keywords

    EU; Gravity model; International trade; Japan; UK.;

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