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Multinationals’ effects: a nearly unexplored aspect of Brexit

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Fernández-Pacheco Theurer, Claudia and López Ruíz, José Luis and Latorre Muñoz, María Concepción (2018) Multinationals’ effects: a nearly unexplored aspect of Brexit. Journal of International Trade Law and Policy, 17 (1-2). pp. 2-18. ISSN 1477-0024

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Official URL: https://doi.org/10.1108/JITLP-12-2017-0053



Abstract

Purpose: The purpose of this paper is to review the economic studies on Brexit, highlighting that they have focused mainly on its negative impact on trade. The economic intuition behind these outcomes is provided, explaining why they are asymmetric with the UK being much more harmed than EU-27.
Design/methodology/approach: The importance of foreign multinationals in the UK and of UK’s multinationals abroad is shown using a non-standard quantification, which may be preferable than conventional methodologies. In addition, EU trade and investment legislative regimes are explained. Particular attention is paid to the change after the 2009 Lisbon Treaty which transfers foreign investment to the exclusive competence of the EU as opposed to EU states.
Findings: The data show that EU-27 is a much less important investment than trade partner for UK.
Originality/value: Although modelling the economy-wide impact of multinationals is challenging, the data and EU legislative framework analyzed suggest it is very much worthwhile. Other considerations about UK’s diminished leveraging power to negotiate after its EU’s withdrawal are also considered


Item Type:Article
Uncontrolled Keywords:Foreign direct investment, FDI, Economic impact, EU FDI legislative framework, EU trade legislative framework, Foreign trade, United Kingdom, European Union
Subjects:Social sciences > European Union > Community law
Social sciences > European Union > European Union member states
Social sciences > European Union > Economic and financial policy
Social sciences > Economics > Commerce
Social sciences > Economics > World economy
Social sciences > Economics > Finance
ID Code:54970
Deposited On:10 Apr 2019 09:14
Last Modified:10 Apr 2019 09:14

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