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The Sunday Leader (Sri Lanka):
The good, the bad and the ugly of Brexit

3 July 2016

Overall, Brexit is likely to have a negative impact on inward FDI. New empirical analysis by Center for Economic Performance implies that leaving the EU will reduce FDI inflows to the UK by around 22 per cent. Such losses of investment will damage UK productivity and could lower real incomes by 3.4 per cent. This is larger than our estimates of the static income losses from trade, which are 2.6 per cent even under our 'pessimistic scenario' (Dhingra et al, 2016). Case studies of cars and finance also show that Brexit would lower EU-related output of goods and services, and erode the UK's ability to negotiate concessions from regulations on EU related transactions.

This article was published online by The Sunday Leader (Sri Lanka) on July 3, 2016
Link to article here

Related publications
The consequences of Brexit for UK trade and living standards, Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, CEP Brexit Analysis Series Paper No.02, March 2016
See Technical Appendix to CEP Brexit Analysis Series Paper No.2 here

Related links
Swati Dhingra webpage
Hanwei Huang webpage
Gianmarco Ottaviano webpage
Thomas Sampson webpage
John Van Reenen webpage
Trade Programme webpage
Growth Programme webpage

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