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So a bit more on the @CEP_LSE report published on the @UKandEU site today ukandeu.ac.uk/voting-with-th… (1)
The authors, @DennisNovy et al, have produced the first rigorous analysis of how the referendum has affected investment abroad by UK firms (2)
The referendum has led to a 12% increase in the number of new investments made by uk firms in other EU MS. £8.3 billion more in outward investment by third quarter 2018 (3)
Increased investment in EU comes entirely from the services sector. No evidence of any effect on foreign investment by UK manufacturing firms. (4)
No sign of any “global Britain” effect. Which is to say, there has not been an increase in investment by UK firms in OECD countries outside the EU (5)
And, crucially, higher outward investment has been accompanied by lower investment into the UK from the EU. The authors find that the referendum reduced EU investment in the UK by 11 percent, amounting to £3.5 billion of lost investment. (6)
Go check out the report. Well worth a read. cep.lse.ac.uk/pubs/download/… (End)
