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BREXIT AND IMPACT ROUTES THROUGH GLOBAL VALUE CHAINS

Published online by Cambridge University Press:  28 April 2020

Jyrki Ali-Yrkkö  and
Tero Kuusi
Jyrki Ali-Yrkkö
Affiliation:
ETLA, The Research Institute of the Finnish economy. E-mails: jyrki.ali-yrkko@etla.fi; tero.kuusi@etla.fi.
Tero Kuusi
Affiliation:
ETLA, The Research Institute of the Finnish economy. E-mails: jyrki.ali-yrkko@etla.fi; tero.kuusi@etla.fi.
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Abstract

We analyse the trade routes between the UK and EU countries. Our results show that the relative importance of the UK as a trading partner in the EU has slightly decreased. We further decompose the total value added into components that quantify the value added that is generated through direct trade with the UK and the indirect trade that is channelled through third countries. Close to one third of the total value added is generated through indirect trade and two thirds through direct trade. Furthermore, 18 per cent of EU countries’ value-added trade to the UK passes through the UK onto other countries.

Keywords

Global value chainBrexitimpactindirectvalue addedpassthrough.F13F14F23L23.
Type
Research Article
Information
National Institute Economic Review , Volume 252 , May 2020 , pp. R33 - R44
Copyright
© National Institute of Economic and Social Research, 2020

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Footnotes

Financial support from the Ministry for Foreign Affairs (Finland) is gratefully acknowledged.

References

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