The Impact of Brexit on Foreign Investment and Production

Ellen McGrattan and Andrea Waddle

American Economic Journal: Macroeconomics, 2020, vol. 12, issue 1, 76-103

Abstract: Using simulations from a multicountry neoclassical growth model, we analyze several post-Brexit scenarios. First, the United Kingdom unilaterally imposes tighter restrictions on FDI and trade from other EU nations. Second, the European Union retaliates and imposes the same restrictions on the United Kingdom. Finally, the United Kingdom reduces restrictions on other nations during the post-Brexit transition. Model predictions depend crucially on the policy response of multinationals' investment in technology capital, accumulated know-how from investments in R&D, brands, and organizations used simultaneously in their domestic and foreign operations.

JEL-codes: D25 F13 F15 F23 G31 O32 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (47)

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/mac.20170399 (application/pdf)
https://www.aeaweb.org/doi/10.1257/mac.20170399.data (application/zip)
https://www.aeaweb.org/doi/10.1257/mac.20170399.ds (application/zip)

Related works:
Working Paper: The Impact of Brexit on Foreign Investment and Production (2017)
Working Paper: The Impact of Brexit on Foreign Investment and Production (2017)
Working Paper: The Imact of Brexit on Foreign Investment and Production (2017)
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:aea:aejmac:v:12:y:2020:i:1:p:76-103

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

DOI: 10.1257/mac.20170399

Access Statistics for this article

American Economic Journal: Macroeconomics is currently edited by Simon Gilchrist

More articles in American Economic Journal: Macroeconomics from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().