THE EFFECTS OF THE EU MEMBERSHIP ON THE UK ECONOMY: A RETROSPECTIVE EVIDENCE


Oktayer A. , Kandemir S. A.

Innovation and Global Issues Congress 5, Ankara, Türkiye, 2 - 04 Mayıs 2019, ss.113-127

  • Basıldığı Şehir: Ankara
  • Basıldığı Ülke: Türkiye
  • Sayfa Sayısı: ss.113-127

Özet

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.