Wen Chen, Bart Los, Philip McCann, Raquel Ortega-Argilés, Mark Thissen, Frank van Oort · 2017
Papers in Regional Science · Wiley

The continental divide? Economic exposure to Brexit in regions and countries on both sides of The Channel

In this paper we employ an extension of the World Input‐Output Database (WIOD) with regional detail for EU countries to study the degree to which EU regions and countries are exposed to negative trade‐related consequences of Brexit. We develop an index of this exposure, which incorporates all effects due to geographically fragmented production processes within the UK, the EU and beyond. Our findings demonstrate that UK regions are far more exposed than regions in other countries. Only regions in the Republic of Ireland face exposure levels similar to some UK regions, while the next most affected regions are in Germany, The Netherlands, Belgium and France. This imbalance may influence the outcomes of the negotiations between the UK and the EU.

Full publication is available on: DOI 10.1111/pirs.12334

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Bart Los

Bart Los
University of Groningen

Bart Los is professor of technological progress and structural change at the Groningen Growth and Development Centre at the University of Groningen, the Netherlands, and is currently vice-president of the international input-output association. He has been joint leader of the World Input-Output Database project (www.wiod.org), and has recently investigated the distribution of factor incomes in GVCs, as well as the role of GVCs in transmitting trade shocks, such as Brexit. He holds a PhD from the University of Twente, the Netherlands.

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