{"title":"Mind the (trade) gap! How costly is erecting barriers to trade?","authors":"Beata Gafka","doi":"10.2139/ssrn.3702630","DOIUrl":null,"url":null,"abstract":"Brexit referendum disrupted global trade: UK's exchange with EU and numerous third countries would suffer. Relative stock prices reacted accordingly with the damage greater and longer-lasting for the UK than the block. UK-focused manufacturing fared worst in both regions. UK's EU-exposed services firms were also impacted – the market correctly expected December 2020 ''no-deal'' outcome for that sector. Third-country exposure attenuated the shock's impact on EU but not UK companies. Consequently, the UK zone factor underperformed the old-EU one by 20 pp between 2016 and 2019. Brexit exposure high-low portfolio explains 70% of the time-series variation in this underperformance. Overall, the results showcase impact of trade de-liberalization on firm and country business risk.","PeriodicalId":296326,"journal":{"name":"International Institutions: European Union eJournal","volume":"17 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2021-10-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Institutions: European Union eJournal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3702630","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
Brexit referendum disrupted global trade: UK's exchange with EU and numerous third countries would suffer. Relative stock prices reacted accordingly with the damage greater and longer-lasting for the UK than the block. UK-focused manufacturing fared worst in both regions. UK's EU-exposed services firms were also impacted – the market correctly expected December 2020 ''no-deal'' outcome for that sector. Third-country exposure attenuated the shock's impact on EU but not UK companies. Consequently, the UK zone factor underperformed the old-EU one by 20 pp between 2016 and 2019. Brexit exposure high-low portfolio explains 70% of the time-series variation in this underperformance. Overall, the results showcase impact of trade de-liberalization on firm and country business risk.
京公网安备 11010802042870号
京ICP备2023020795号-1
分享
求助内容：
应助结果提醒方式：
扫码关注我们
