The impact of the Brexit referendum on UK’s value-added exports: A structural decomposition

Enrique Feás

Economic Analysis and Policy, 2023, vol. 80, issue C, 1239-1254

Abstract: This article uses for the first time inter-country input–output data and a structural decomposition method to assess the impact of the 2016 Brexit referendum on the United Kingdom’s value-added exports. We find that final demand explains less than 30% of the 6.9-point decline in the UK’s value-added exports in 2016 (with a market share loss that offset the positive impact of global demand), whereas more than 70% was due to extraordinary changes in input sourcing decisions of the rest of the world. This means that the UK’s value-added exports were structurally affected by the weakening of the linkage effects of providing inputs to the rest of the world, especially to the EU. This article paves the way for further analyses of the structural effects of Brexit and other trade and industrial policies that alter the international allocation of inputs.

Keywords: Global value chains; Value-added exports; Input–output tables; Trade in value-added; Brexit; European Union (search for similar items in EconPapers)
JEL-codes: E16 F1 F14 F15 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0313592623002540
Full text for ScienceDirect subscribers only

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: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:80:y:2023:i:c:p:1239-1254

DOI: 10.1016/j.eap.2023.10.007

Access Statistics for this article

Economic Analysis and Policy is currently edited by Clevo Wilson

More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().