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Export-platform FDI and Brexit Uncertainty

Author

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  • Nicolo' Tamberi

    (Department of Economics, University of Sussex, Falmer, United Kingdom)

Abstract

This paper analyses the effect of Brexit uncertainty on export-platform FDI in the United Kingdom. First, I develop a partial equilibrium framework with heterogeneous firms that involves the trade policy uncertainty about access to the EU. Second, I derive a difference in differences equation that I test empirically using data on manufacturing FDI up to 2018. Results show that trade policy uncertainty negatively impacted on firms' decision to invest in export-platform activities in the UK, and there is some evidence that firms preferred to locate in the continent. I estimate the effect of trade policy uncertainty as a reduction of around 13.5% export-platform FDI projects.

Suggested Citation

  • Nicolo' Tamberi, 2020. "Export-platform FDI and Brexit Uncertainty," Working Paper Series 0320, Department of Economics, University of Sussex Business School.
    • Handle: RePEc:sus:susewp:0320
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    References listed on IDEAS

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