The Brexit Vote and Trade

The Brexit vote created a lot of economic uncertainty in Great Britain. Since uncertainty affects the decisions of businesses, it also affects those of traders. This paper provides evidence that the uncertainty created by the Brexit vote affected the international trade of the United Kingdom. The descriptive analysis points out that imports and exports from and to the European Union did decline. The general effect, however, is negligible. It turns out that there is no difference in effect between different kinds of goods. These results highlight that the economic impact of the Brexit is not perceived positively by businesses, though the negative sentiment is not strong enough to have significant impacts.