Voting with their money: Brexit and outward investment by UK firms
| Autor: | Elsa Leromain, Dennis Novy, Thomas Sampson, Holger Breinlich |
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| Přispěvatelé: | UCL - SSH/LIDAM/IRES - Institut de recherches économiques et sociales |
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Synthetic control method
Economics and Econometrics HG Finance media_common.quotation_subject 05 social sciences Subsidiary International economics Foreign direct investment JN Political institutions (Europe) Investment (macroeconomics) Globalization Brexit Voting 0502 economics and business Unemployment Referendum Economics 050207 economics Finance 050205 econometrics media_common |
| Zdroj: | European Economic Review, Vol. 124, p. 103400 (2020) |
| ISSN: | 0014-2921 |
| Popis: | We study the impact of the 2016 Brexit referendum on UK foreign direct investment. Using the synthetic control method to construct appropriate counterfactuals, we show that by March 2019 the Leave vote had led to a 17% increase in the number of UK outward investment transactions in the remaining EU27 member states, whereas transactions in non-EU OECD countries were unaffected. These results support the hypothesis that UK companies have been setting up European subsidiaries to retain access to the EU market after Brexit. At the same time, we find that the number of EU27 investment projects in the UK has declined by around 9%, illustrating that being a smaller economy than the EU leaves the UK more exposed to the costs of economic disintegration.\ud \ud \ud |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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