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FDI, Industrial Policy and Employment Impacts on Brexit

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  • Alali, Walid Y.
  • Ellalee, Haider

Abstract

The UK Inward investment is likely to be negatively affected in several ways in the event of a "Brexit" via customs barriers, but even "softer" forms of Brexit such as the current potential agreement are likely to cause customs delays, Limits companies' ability to transfer employees and coordinate "service" activities. In addition, are the negative effects of currency depreciation. In the context of already existing labour market polarization, inward investment flows into advanced manufacturing, food technology and financial services, which can provide “good quality” jobs, are particularly vulnerable under Brexit to frictions in global value chains. After highlighting the case of the auto industry, the paper moves on to emphasize the links between inward investment, employment restructuring, and the quality of jobs that have been created by foreign firms.

Suggested Citation

  • Alali, Walid Y. & Ellalee, Haider, 2018. "FDI, Industrial Policy and Employment Impacts on Brexit," EconStor Preprints 274656, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:274656
    DOI: 10.2139/ssrn.4482587
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    References listed on IDEAS

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    More about this item

    Keywords

    Brexit; foreign direct investment; global value chains; employment; job quality; regions; industrial policy;
    All these keywords.

    JEL classification:

    • E65 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Studies of Particular Policy Episodes
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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