LSE British Politics and Policy blog:
LSE experts look ahead to 2015
7 February 2015
John van Reenen
Brexit will have serious economic consequences. Half of our exports are to the EU, we benefit from large amounts of foreign investment seeking a platform to the world's largest market, competition from Europe has boosted productivity and EU immigration means Britain gets talent. Not only would there be immediate divorce costs, but we'll lose the benefits of future integration, especially in services. Estimates by LSE's Centre for Economic Performance put the loss of Brexit from trade cuts alone as high as a 9.5 percent reduction in average income. This is a similar level of economic damage as the global financial crisis ... only this time it's a voluntary act of economic self-harm.
This article was posted online by the LSE British Politics and Policy blog on February 7, 2015
Link to article here
Related Publications
'Brexit or Fixit? The Trade and Welfare Effects of Leaving the European Union', Gianmarco I. P. Ottaviano, Joao Paulo Pessoa, Thomas Sampson and John Van Reenen, Centre for Economic Performance Policy Analysis No.16, May 2014
Related links
Gianmarco Ottaviano webpage
Joao Paulo Pessoa webpage
Thomas Sampson webpage
John Van Reenen webpage
Globalisation Programme webpage
Productivity and Innovation Programme webpage