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LSE Brexit Blog: Voting with their money: Brexit and outward investment by UK firms
11 February 2019
Are firms moving investment abroad because of Brexit? Holger Breinlich, Elsa Leromain, Dennis Novy and Thomas Sampson (LSE) use a 'doppelganger method' to estimate how foreign direct investment would have evolved without the vote for Brexit. They find a 12% increase in the number of new investments made by UK firms in EU countries, and an 11% fall in new investments made by EU firms in the UK. Moreover, there is no sign of a 'Global Britain' effect that would have seen UK firms investing elsewhere in the world.