The Effect of Brexit on United Kingdom Productivity: Synthetic Control Analysis
The Effect of Brexit on United Kingdom Productivity: Synthetic Control Analysis
Author(s): Moatazbellah FARIDSubject(s): Economy, Supranational / Global Economy, Business Economy / Management
Published by: ASERS Publishing
Keywords: Brexit; labor productivity; productivity puzzle; synthetic control method;
Summary/Abstract: In this paper I analyze the effect of Brexit on United Kingdom labor productivity and its components using a synthetic control methodology. My results show that the Brexit vote had a negative impact on labor productivity, causing GDP per hour worked to decrease by an average of 2.24% per year in comparison to the absence of Brexit. The two components of labor productivity are GDP and hours worked. I find that the decrease in the GDP is more than the increase in hours worked per person, causing the labor productivity to decline.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XV/2020
- Issue No: 70
- Page Range: 791-800
- Page Count: 10
- Language: English