Abstract
Presently, Brexit and its implications
for the United Kingdom (UK),
European Union and rest of the world, are regarded as
major concerns across the globe. The present study is an
attempt to estimate the shock that the UKs economy will
likely receive as a consequence of Brexit. It also seeks to
find an answer to the question whether costs incurred as
a consequence of Brexit are repairable or otherwise for
the UK. By applying a vector autoregressive (VAR) model
on annual time series data of four important economic
variables, i.e. gross domestic product (GDP), imports,
exports and foreign direct investment, ranging from
1970-2016, an interdependence relation was found to
hold among variables. The result concludes that through
Brexit, the UKs economy will face some fluctuations
which wont last any longer than 12 to 15 years. In return,
it will grant UK sovereignty in the different vital segments
of the country like economic policies and political
decisions.
Authors
1-Ilhamah Qiamy Department of Economics,University of Peshawar, KP, Pakistan2-Fahim Nawaz Department of Economics,University of Peshawar, KP, Pakistan. 3-Syed Umair Jalal MPhil Scholar,Department of Political Science,University of Peshawar, Peshawar, KP, Pakistan.
Keywords
Brexit, VAR, Shocks
DOI Number
10.31703/ger.2018(III-II).01
Page Nos
1-11
Volume
III
Issue
II