The Impact of Brexit on UK Firms
By Nicholas Bloom, P. Bunn, Scarlet Chen, P. Mizen, Pawel Smietanka, Gregory Thwaites. Social Science Research Network, 2019
145 citations recorded by the source corpus.
We use a major new survey of UK firms, the Decision Maker Panel, to assess the impact of the June 2016 Brexit referendum. We identify three key results. First, the UK’s decision to leave the EU has generated a large, broad and long-lasting increase in uncertainty. Second, anticipation of Brexit is estimated to have gradually reduced investment by about 11% over the three years following the June 2016 vote. This fall in investment took longer to occur than predicted at the time of the referendum, suggesting that the size and persistence of this uncertainty may have delayed firms’ response to the Brexit vote. Finally, the Brexit process is estimated to have reduced UK productivity by between 2% and 5% over the three years after the referendum. Much of this drop is from negative within-firm effects, in part because firms are committing several hours per week of top-management time to Brexit planning. We also find evidence for smaller negative between-firm effects as more productive, internationally exposed, first have been more negatively impacted than less productive domestic firms.
Subfields: Strategy and Management
View Paper: https://www.semanticscholar.org/paper/98acbda11e4e23ff31d024f2a0850670dd589328
Citations in the corpus
- Covid-Induced Economic Uncertainty (2020, unknown): “…date in March 2020 Source: Decision Maker Panel Survey conducted by the Bank of England, Nottingham University and Stanford University and Bloom et al. (2019) and www.decisionmakerpanel.com 2020Q2 2020Q4 2021Q2 2021Q4 2022Q2 2022Q4 2023Q2 -20 -15 -10 -5 0 5 G DP G ro wt h, P er ce…”
- The Impact of Covid-19 on Productivity (2020, unknown): “This helps to keep the survey short for respondents whilst yielding a 7 See Bloom et al. (2019) for analysis of the impact of Brexit on UK businesses using data from the DMP. 8 FAME is provided by Bureau Van Dijk (BVD) using data on the population of UK firms from the UK Companies House.”