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Consequences of Brexit and options for a ‘Global Britain’

Author

Listed:
  • Steven Brakman
  • Harry Garretsen
  • Tristan Kohl

Abstract

The United Kingdom has opted to leave the European Union. The consequences of Brexit on international trade are large and negative. While the UK aims for new, ambitious trade agreements after Brexit, it is not explicit about the type of agreements it envisions or with whom specifically. This paper considers the UK's options. We confirm Brexit's substantial, negative trade effects for the UK, EU, and major countries around the world. After reviewing all potential options, our answer to the question whether the UK has an alternative for the existing agreement with the EU is: No. Paradoxically, only a trade agreement with the EU can compensate for Brexit's trade losses. El Reino Unido ha optado por abandonar la Unión Europea. Las consecuencias de Brexit en el comercio internacional son grandes y negativas. Si bien el Reino Unido busca acuerdos comerciales nuevos y ambiciosos después de Brexit, no ha manifestado explícitamente el tipo de acuerdos que prevé o con quién específicamente. Este artículo considera las opciones del Reino Unido. En él se confirman los sustanciales efectos comerciales negativos de Brexit para el Reino Unido, la UE y los principales países del mundo. Después de revisar todas las opciones posibles, nuestra respuesta a la pregunta de si el Reino Unido tiene una alternativa para el acuerdo existente con la UE es: No. Paradójicamente, solo un acuerdo comercial con la UE puede compensar las pérdidas comerciales de Brexit. イギリスは欧州連合(EU)から離脱することを選択した。ブレグジッド(Brexit:イギリスのEU離脱)は国際貿易に対して大きなマイナスの影響を与えている。イギリスは、離脱後の新しい野心的な貿易協定を目指しているが、イギリスが想定している協定の内容や協定の具体的な相手は明確ではない。本稿では、イギリスにある選択肢を考察する。ブレグジッドが、イギリス、EU、および世界の主要大国に、貿易に関してマイナスの影響を大きく及ぼしたことが確認される。イギリスに現在のEUとの協定の代替となる選択肢があるかという問題については、選択肢の候補をすべてレビューして得られた答えはノーである。逆説的であるが、EUとの貿易協定だけがブレグジッドによる貿易損失を補償することができる。

Suggested Citation

  • Steven Brakman & Harry Garretsen & Tristan Kohl, 2018. "Consequences of Brexit and options for a ‘Global Britain’," Papers in Regional Science, Wiley Blackwell, vol. 97(1), pages 55-72, March.
  • Handle: RePEc:bla:presci:v:97:y:2018:i:1:p:55-72
    DOI: 10.1111/pirs.12343
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    Cited by:

    1. Swati Dhingra & Gianmarco Ottaviano & Veronica Rappoport & Thomas Sampson & Catherine Thomas, 2018. "UK trade and FDI: A post‐Brexit perspective," Papers in Regional Science, Wiley Blackwell, vol. 97(1), pages 9-24, March.
    2. Harald Oberhofer & Michael Pfaffermayr, 2021. "Estimating the trade and welfare effects of Brexit: A panel data structural gravity model," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(1), pages 338-375, February.
    3. Hagemejer, Jan & Dunin-Wasowicz, Maria & Michalek, Jan & Szyszka, Jacek, 2020. "Trade-related effects of Brexit. Implications for Central and Eastern Europe," Conference papers 333187, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Dhingra, Swati & Machin, Stephen & Overman, Henry, 2017. "Local Economic Effects of Brexit," National Institute Economic Review, National Institute of Economic and Social Research, vol. 242, pages 24-36, November.
    5. Neary, Peter & Carrère, Céline & Mrázová, Monika, 2020. "Gravity without Apologies: The Science of Elasticities, Distance, and Trade," CEPR Discussion Papers 14473, C.E.P.R. Discussion Papers.
    6. Céline Carrère & Monika Mrázová & J Peter Neary, 2020. "Gravity Without Apology: the Science of Elasticities, Distance and Trade," The Economic Journal, Royal Economic Society, vol. 130(628), pages 880-910.
    7. Paola Fezzigna & Simone Borghesi & Dario Caro, 2019. "Revising Emission Responsibilities through Consumption-Based Accounting: A European and Post-Brexit Perspective," Sustainability, MDPI, vol. 11(2), pages 1-13, January.
    8. Bart Los & Marcel P. Timmer, 2020. "Measuring Bilateral Exports of Value Added: A Unified Framework," NBER Chapters, in: Challenges of Globalization in the Measurement of National Accounts, pages 389-421, National Bureau of Economic Research, Inc.
    9. Erdey, László & Gáll, József & Márkus, Ádám & Tőkés, Tibor, 2020. "Changes in the trade patterns of the UK in a global perspective," MPRA Paper 98110, University Library of Munich, Germany, revised 21 Jan 2020.
    10. Douglas Silveira & Izak Silva & Silvinha Vasconcelos & Fernando Perobelli, 2020. "The Brexit game: uncertainty and location decision," Papers in Regional Science, Wiley Blackwell, vol. 99(6), pages 1515-1538, December.
    11. André Wolf, 2019. "Der Brexit aus EU-Perspektive [The Brexit from an EU perspective]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 99(10), pages 739-740, October.
    12. Kaan Celebi, 2021. "Quo Vadis, Britain? – Implications of the Brexit process on the UK’s real economy," International Economics and Economic Policy, Springer, vol. 18(2), pages 267-307, May.
    13. Tristan Kohl, 2019. "The Belt and Road Initiative’s effect on supply-chain trade: evidence from structural gravity equations," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 12(1), pages 77-104.
    14. Glückler Johannes & Wójcik Dariusz, 2023. "Seven Years of Brexit: Economic Geographies of Regional De- and Recoupling," ZFW – Advances in Economic Geography, De Gruyter, vol. 67(2), pages 67-75, August.
    15. Julia Grübler & Robert Stehrer, 2017. "Die Relevanz von nicht-tarifären Maßnahmen für den Außenhandel," FIW Policy Brief series 036, FIW.
    16. Peter A.G. van Bergeijk, 2019. "Deglobalization 2.0," Books, Edward Elgar Publishing, number 18560.
    17. Andrei HREBENCIUC, 2017. "The costs of Brexit for UK economy," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 319-327, Summer.
    18. Harald Oberhofer & Michael Pfaffermayr & Yvonne Wolfmayr, 2021. "Die Auswirkungen des Brexit auf Österreichs Wirtschaft," WIFO Studies, WIFO, number 66782, February.

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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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