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An empirical study of the immediate effect of the brexit referendum on greenfield foreign direct investment in the uk

Author

Listed:
  • Daniel Bembennek

    (WHU - Otto Beisheim School of Management)

  • Michael Frenkel

    (WHU - Otto Beisheim School of Management)

Abstract

We investigate the impact of the Brexit referendum on greenfield foreign direct investment (GFDI) inflows to the UK in the years before an agreement with the EU was reached. The study is motivated by the question of whether the signal of the policy change was already strong enough to influence long-term investment decisions. We find robust evidence of a negative impact on greenfield investment inflows to the UK from 2016 to 2019.

Suggested Citation

  • Daniel Bembennek & Michael Frenkel, 2024. "An empirical study of the immediate effect of the brexit referendum on greenfield foreign direct investment in the uk," Economics Bulletin, AccessEcon, vol. 44(1), pages 57-63.
    • Handle: RePEc:ebl:ecbull:eb-23-00292
    as

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    References listed on IDEAS

    as
    1. Paul J. J. Welfens & Fabian J. Baier, 2018. "BREXIT and Foreign Direct Investment: Key Issues and New Empirical Findings," IJFS, MDPI, vol. 6(2), pages 1-21, April.
    2. Disdier, Anne-Celia & Mayer, Thierry, 2007. "Je t'aime, moi non plus: Bilateral opinions and international trade," European Journal of Political Economy, Elsevier, vol. 23(4), pages 1140-1159, December.
    3. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    4. Hieu Thanh Nguyen & Hiep Ngoc Luu & Ngoc Ha Do, 2021. "The dynamic relationship between greenfield investments, cross-border M&As, domestic investment and economic growth in Vietnam," Economic Change and Restructuring, Springer, vol. 54(4), pages 1065-1089, November.
    5. J. M. C. Santos Silva & Silvana Tenreyro, 2011. "poisson: Some convergence issues," Stata Journal, StataCorp LLC, vol. 11(2), pages 215-225, June.
    6. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2008. "Estimating regional trade agreement effects on FDI in an interdependent world," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 194-208, July.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F5 - International Economics - - International Relations, National Security, and International Political Economy

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