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

Author

Listed:
  • Funda H. Sezgin

    (Istanbul University-Cerrahpaşa)

  • 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.

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Handle: RePEc:bau:ijabms:v:6:y:2021:i:2:id:217
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