Economics at your fingertips  

The costs of Brexit for UK economy

Andrei Hrebenciuc
Additional contact information
Andrei Hrebenciuc: The Bucharest Academy of Economic Studies, Romania

Theoretical and Applied Economics, 2017, vol. XXIV, issue 2(611), Summer, 319-327

Abstract: Leaving the EU without a deal in place for future trading agreements would be the worstcase scenario for British economy. In the long-run Brexit is expected to reduce UK living standards due to the declines in trade and foreign direct investments. The British economy will suffer from the losses implied in the export sectors due to the fact that 45% of its exports are destined to EU members. The potential loss of importance for the City of London will generate a fragmented European financial market that will reduce systemic risk. On the other hand, market participants could face a dual regulation on financial markets, increased uncertainties and frictional costs. The plan to design a Capital Market Union will create a strong competition for London, while Frankfurt and Paris are eager to absorb the financial services lost by British economy.

Keywords: banking union; financial markets; financial services; trade policy. (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
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:

Access Statistics for this article

Theoretical and Applied Economics is currently edited by Marin Dinu

More articles in Theoretical and Applied Economics from Asociatia Generala a Economistilor din Romania - AGER Contact information at EDIRC.
Series data maintained by Marin Dinu ().

Page updated 2017-09-29
Handle: RePEc:agr:journl:v:xxiv:y:2017:i:2(611):p:319-327