• AEA in the news
  • January 26, 2017

Britain's Reliance on Trade After Brexit

Britain will rely heavily on trade deals to spur economic growth after its departure from the European Union

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Bloomberg cited an American Economic Review paper in a piece about Britain’s reliance on trade to spur economic growth after its exit from the European Union. The 1999 paper by Jeffrey Fankel and David Romer showed that every 1 percentage point increase in the share of trade in output raises an individual’s income by up to 2 percentage points. Still, that result was only moderately statistically significant.