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The economic Gordian Knot of Brexit: an East and Southeast Asian perspective

Author

Listed:
  • Ruiz Estrada Mario Arturo

    (University of Malaya)

  • Evangelos Koutronas

    (Universiti Sains Malaysia)

  • Donghyun Park

    (Asian Development Bank (ADB))

Abstract

The objective of this paper is to establish conceptual foundations of analyzing the economic dimensions of Brexit. The International Financial-Trade Exchange Leaking Index (TIFTEL-Index) attempts to analyze and compare pre-Brexit versus post-Brexit international trade and international financial transactions between East and Southeast Asia and Europe. TIFTEL-index is based on three main variables, namely (1) international trade exchange marginal rate (∆Τ′), (2) international financial exchange marginal rate (∆σ′), and (3) GDP in real prices growth marginal rate (∆γ). Simulation findings indicate that Brexit will have only a limited negative effect on the world economy. In addition, Brexit will affect East Asia more than Southeast Asia region.

Suggested Citation

  • Ruiz Estrada Mario Arturo & Evangelos Koutronas & Donghyun Park, 2019. "The economic Gordian Knot of Brexit: an East and Southeast Asian perspective," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(6), pages 2797-2820, November.
    • Handle: RePEc:spr:qualqt:v:53:y:2019:i:6:d:10.1007_s11135-019-00895-5
    DOI: 10.1007/s11135-019-00895-5
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    References listed on IDEAS

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