Will the future EU-UK free trade agreement affect foreign direct investment?

dc.contributor.authorCarril Caccia, Federico
dc.date.accessioned2025-10-09T11:13:27Z
dc.date.available2025-10-09T11:13:27Z
dc.date.issued2020-07-28
dc.date.updated2025-10-09T11:13:27Z
dc.description.abstractThis article aims to provide new insight on how Brexit will affect foreign direct investment (FDI) into the UK. By estimating an augmented gravity equation which accounts for the depth of free trade agreements (FTAs) as well as for EU and euro area membership, the article gauges the potential impact that different EU-UK trade scenarios might have on FDI flows and stocks. Results show that under a no-deal scenario, FDI flows from the EU into the UK would plunge by 25.9% – 40.6%, and inward FDI stocks would decrease by 49.2% – 53.9%. However, the depth of the future FTA can mitigate this negative outcome. More generally, the article shows that the FDI costs of leaving the EU would be significantly higher for the euro area countries.en
dc.description.sponsorshipThis work was supported by Generalitat Valenciana [GV/2017/052]; Junta de Andalucía [SEJ 340]en
dc.identifier.citationCarril-Caccia, F. (2020). Will the future EU-UK free trade agreement affect foreign direct investment? Intereconomics, 55(4), 266-270. https://doi.org/10.1007/S10272-020-0911-3
dc.identifier.doi10.1007/S10272-020-0911-3
dc.identifier.eissn1613-964X
dc.identifier.issn0020-5346
dc.identifier.urihttps://hdl.handle.net/20.500.14454/3910
dc.language.isoeng
dc.publisherSpringer
dc.rights© The Author(s) 2020
dc.titleWill the future EU-UK free trade agreement affect foreign direct investment?en
dc.typejournal article
dcterms.accessRightsopen access
oaire.citation.endPage270
oaire.citation.issue4
oaire.citation.startPage266
oaire.citation.titleIntereconomics
oaire.citation.volume55
oaire.licenseConditionhttps://creativecommons.org/licenses/by/4.0/
oaire.versionVoR
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