Export-platform FDI and Brexit Uncertainty
Nicolo' Tamberi ()
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Nicolo' Tamberi: Department of Economics, University of Sussex, Falmer, United Kingdom
Working Paper Series from Department of Economics, University of Sussex Business School
This paper analyses the effect of Brexit uncertainty on export-platform FDI in the United Kingdom. First, I develop a partial equilibrium framework with heterogeneous firms that involves the trade policy uncertainty about access to the EU. Second, I derive a difference in differences equation that I test empirically using data on manufacturing FDI up to 2018. Results show that trade policy uncertainty negatively impacted on firms' decision to invest in export-platform activities in the UK, and there is some evidence that firms preferred to locate in the continent. I estimate the effect of trade policy uncertainty as a reduction of around 13.5% export-platform FDI projects.
New Economics Papers: this item is included in nep-eur and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:sus:susewp:0320
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