Brexit: an analysis of UK trade flows

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Date
2018Author
Advisor
Version
Acceso abierto / Sarbide irekia
Type
Trabajo Fin de Grado/Gradu Amaierako Lana
Impact
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nodoi-noplumx
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Abstract
This paper analyses the current situation of Brexit focusing on the UK trade. The aim is to
evaluate how important the EU membership for the UK is because Free Trade and European
Integration are beneficial for the UK. The Gravity Model of International Trade augmented
with dummy variables is applied following two different approaches. First, 2016 Crosssectional
data and second, 1995-2016 Pane ...
[++]
This paper analyses the current situation of Brexit focusing on the UK trade. The aim is to
evaluate how important the EU membership for the UK is because Free Trade and European
Integration are beneficial for the UK. The Gravity Model of International Trade augmented
with dummy variables is applied following two different approaches. First, 2016 Crosssectional
data and second, 1995-2016 Panel data for United Kingdom. With this
methodology it is demonstrated that the Gravity Model holds for the UK trade flows.
Besides, the EU membership does enhance UK trade being more important for imports than
for exports. The EU membership overcomes non-tariff barriers and has created more trade
for the UK than diverted. Therefore, Brexit would shrink welfare mainly in the UK and
unevenly in EU member states. [--]
Subject
Brexit,
Gravity model,
Trade creation,
Trade diversion,
European integration
Degree
Enpresen Administrazio eta Zuzendaritzan Nazioarteko Graduatua / Ekonomian Nazioarteko Graduatua Nafarroako Unibertsitate Publikoan /
Graduado o Graduada Internacional en Administración y Dirección de Empresas / Graduado o Graduada Internacional en Economía por la Universidad Pública de Navarra