The negative impact of disintegration on trade: the case of Brexit

Juan de Lucio, Raúl Mínguez, Asier Minondo () and Francisco Requena Silvente
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Raúl Mínguez: Cámara de Comercio de España and Universidad Antonio de Nebrija. Calle de Santa Cruz de Marcenado, 27, 28015, Madrid (Spain).

No 2302, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: Using firm-level export and import transactions and by applying an event-study methodology, we quantify the impact of the UK's withdrawal from the EU's single market and customs union on Spain-UK trade flows. We find that Spanish exports and imports to the UK decreased by 23% and 27%, respectively, relative to the period before the Brexit referendum. Spanish exporters and importers entry into the UK declined and the probability of ending a trade relationship with the UK increased. Products affected by sanitary and phytosanitary measures, and more stringent rules of origin experienced a stronger decline in trade flows. Large firms faced a more severe decrease in exports than small ones after disintegration.

Keywords: Brexit; trade costs; trade policy uncertainty; Spanish Firms; rules of origin; European Union. (search for similar items in EconPapers)
JEL-codes: F10 F14 (search for similar items in EconPapers)
Date: 2023-01
New Economics Papers: this item is included in nep-eec and nep-int
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http://repecsrv.uv.es/paper/RePEc/pdf/eec_2302.pdf First version, 2302 (application/pdf)

Related works:
Journal Article: The negative impact of disintegration on trade: The case of Brexit (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:eec:wpaper:2302

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