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The Growth Effects of EU Membership for the UK: a Review of the Evidence

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  • Crafts, Nicholas

    (University of Warwick)

Abstract

This paper reviews the literature on the implications of EU membership for the UK. It concludes that membership has raised UK income levels appreciably and by much more than 1970s’ proponents of EU entry predicted. These positive effects stem from the EU’s success in increasing trade and the impact of stronger competition on UK productivity. The economic benefits of EU membership for the UK have far exceeded the costs of budgetary transfers and regulation. Brexit is risky and its impact would depend heavily on the terms negotiated and the use made of the policy space that it freed up.

Suggested Citation

  • Crafts, Nicholas, 2016. "The Growth Effects of EU Membership for the UK: a Review of the Evidence," CAGE Online Working Paper Series 280, Competitive Advantage in the Global Economy (CAGE).
  • Handle: RePEc:cge:wacage:280
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    File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/centres/cage/manage/publications/280-2016_crafts.pdf
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    References listed on IDEAS

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    Cited by:

    1. Muhammad Ibrahim Shah, 2021. "Investigating the Role of Regional Economic Integration on Growth: Fresh Insights from South Asia," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 13(1), pages 35-57, January.
    2. Crafts, Nicholas, 2017. "The Postwar British Productivity Failure," The Warwick Economics Research Paper Series (TWERPS) 1142, University of Warwick, Department of Economics.
    3. Sascha O Becker & Thiemo Fetzer & Dennis Novy, 2017. "Who voted for Brexit? A comprehensive district-level analysis," Economic Policy, CEPR;CES;MSH, vol. 32(92), pages 601-650.
    4. Iain Begg, 2017. "Making Sense of the Costs and Benefits of Brexit: Challenges for Economists," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 45(3), pages 299-315, September.
    5. Campos, Nauro F. & Eichenauer, Vera Z. & Sturm, Jan-Egbert, 2020. "Close encounters of the European kind: Economic integration, sectoral heterogeneity and structural reforms," European Economic Review, Elsevier, vol. 129(C).
    6. Swati Dhingra & Hanwei Huang & Gianmarco Ottaviano & João Paulo Pessoa & Thomas Sampson & John Van Reenen, 2017. "The costs and benefits of leaving the EU: trade effects," Economic Policy, CEPR;CES;MSH, vol. 32(92), pages 651-705.
    7. Ansgar Belke & Irina Dubova & Thomas Osowski, 2018. "Policy uncertainty and international financial markets: the case of Brexit," Applied Economics, Taylor & Francis Journals, vol. 50(34-35), pages 3752-3770, July.
    8. Begg, Iain, 2017. "Making sense of the costs and benefits of Brexit: challenges for economists," LSE Research Online Documents on Economics 83587, London School of Economics and Political Science, LSE Library.
    9. Thomas Sampson, 2017. "Brexit: The Economics of International Disintegration," CESifo Working Paper Series 6668, CESifo.
    10. Thomas Sampson, 2017. "Brexit: The Economics of International Disintegration," CEP Discussion Papers dp1499, Centre for Economic Performance, LSE.
    11. Halmai, Péter, 2020. "A dezintegráció gazdaságtana. A brexit esete [The economics of disintegration. The case of Brexit]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 837-877.
    12. International Monetary Fund, 2016. "United Kingdom: Selected Issues," IMF Staff Country Reports 2016/169, International Monetary Fund.
    13. John Van Reenen, 2016. "Brexit's Long-Run Effects on the U.K. Economy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 47(2 (Fall)), pages 367-383.
    14. Sampson, Thomas, 2017. "Brexit: the economics of international disintegration," LSE Research Online Documents on Economics 86591, London School of Economics and Political Science, LSE Library.
    15. Sae Won Chung & Yongmin Kim, 2019. "The Truth behind the Brexit Vote: Clearing away Illusion after Two Years of Confusion," Sustainability, MDPI, Open Access Journal, vol. 11(19), pages 1-16, September.

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    More about this item

    Keywords

    Brexit; competition; income levels; SingleMarket; trade costs. JEL Classification: F15; N14; N74.;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-

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