Innovation and Global Issues Congress 5, Ankara, Turkey, 2 - 04 May 2019, pp.113-127
In this paper, we aim to examine the importance of the European Union for the United
Kingdom economy. In this way, we believe that we can observe the possible effects of Brexit
on British economy. There are three trade options for the United Kingdom, which are alternative
to the European Union membership. If the United Kingdom had preferred one of these
alternatives since 1973 to present, everything would be different for the economy. Therefore,
none of these alternatives is a substitute for being a member of the European Union. In order to
estimate the effects of the aforementioned membership alternatives, we use the ARDL bounds
testing procedure to cointegration in line with our stationarity test results. Our findings suggest
that Brexit’s net impact on the UK economy is positive.