• 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


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.