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Impact of Brexit on Economic Sentiment in Euro Area and European Union

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  • Funda H. Sezgin
  • Yilmaz Bayar

Abstract

The economic sentiment reflects the economic units’ feeling about the prospects of economic performance. This study investigated the impact of Brexit on economic sentiment in Eurozone and European union over the period of January 2010-March 2021through Kapetanios (2005) unit root test with multiple breaks. The empirical analysis respectively revealed the structural breaks of July and Augusts 2016 for Eurozone and European Union. In other words, leave decision from EU by the UK led a structural change in the economic sentiment of Eurozone and EU.

Suggested Citation

  • Funda H. Sezgin & Yilmaz Bayar, 2021. "Impact of Brexit on Economic Sentiment in Euro Area and European Union," International Journal of Applied Business and Management Studies, BAUDER Press, vol. 6(2), pages 1-4, October.
    • Handle: RePEc:bau:ijabms:v:6:y:2021:i:2:id:217
    DOI: 10.68099/ijabms.2021.217
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    References listed on IDEAS

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    1. Antoine Berthou & Sophie Haincourt & Marie-Elisabeth de la Serve & Ángel Estrada & Moritz A. Roth & Alexander Kadow, 2019. "Assessing the macroeconomic impact of Brexit through trade and migration channels," Occasional Papers 1911, Banco de España.
    2. Bas Aarle & Marcus Kappler, 2012. "Economic sentiment shocks and fluctuations in economic activity in the euro area and the USA," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 47(1), pages 44-51, January.
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