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

Juan de Lucio, Raúl Mínguez, Asier Minondo () and Francisco Requena Silvente

European Economic Review, 2024, vol. 163, issue C

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 24% and 27%, respectively, compared to the period before the Brexit referendum. The probability of Spanish exporters and importers starting a trade relationship with the UK decreased and the probability of ending one increased. Products subject to sanitary and phytosanitary measures, stringent rules of origin, and whose technical standards had not been harmonized before disintegration 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: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014292124000278
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The negative impact of disintegration on trade: the case of Brexit (2023)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:163:y:2024:i:c:s0014292124000278

DOI: 10.1016/j.euroecorev.2024.104698

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().