Introduction
The historical choice of Great Britain (GB) to leave the European Union (EU), also known as Brexit, will go down as one of the most extraordinary politico-economic events. It triggered astonishment and anxiety for a long time, particularly regarding its economic effects. With Brexit posing the most unique challenge so far, British policymakers, businesses, and citizens are again faced with how the exit has influenced the country’s economy (Buesa et al., 2020). The economic impact of Brexit as a headline thing can never be underestimated. For policymakers, the vitality and validity of research findings on the impact of Brexit on trade, investment, and growth are irreplaceable since there is little of a vision to rely on within the waters in which the UK is setting sail. Also, businesses operating in the UK have to deal with changing market conditions and rules governing performance, and this requires them to be strategic in their decision-making to survive or succeed (Mustafa et al., 2020). In that sense, Brexit also brings about economic devastation for the citizens, which implies the future and the living standards of livelihoods and job opportunities, thus necessitating clarity and insight into the consequences. The essence of this study is to inform policy formulation, direct business plans, and give the population a tool to survive the economic realities of post-Brexit Britain. Through the analysis of the changing dynamics of the economy, UK organizations will be better equipped with the necessary data and insights in the aftermath of Brexit, which will enable them to take control of the new challenges and opportunities ahead.
Research Question: What has been the economic impact of Brexit on Britain’s economic development?
Literature Review
Brexit’s economic consequences literature spans diverse views and kinds of contents, offering a reasonable basis for understanding the complex impact of British exit from the EU. Buesa et al. 2020 provide a detailed discussion of the trade, investment, and overall performance of the economy issues around Brexit, an issue of great significance for the situation and economic consequences of Brexit. One of the principal issues, Brexit being the other still, is the potential effect of Brexit on trade relations. With the UK no longer a member of the EU’s single market and customs union, the way of its trading has changed (Buesa et al., 2020). Brexit supporters had made their case for more sovereignty and trade policy control. Nevertheless, the present trade barriers and regulatory mismatches are emerging problems for small-scale businesses. The introduction of new customs checks, tariffs, and nontariff barriers has resulted in disrupted supply chains, increased costs, and interruptions in trade flows between the UK and its largest trading partner, the EU.
The confusion regarding future association agreements is also a matter of doubt for the UK’s trade relations with other countries. While Britain tries to sign bilateral trade agreements to cushion the effects of Brexit, the conditions and framework have been put on the table. The EU market was the preferred destination for most UK businesses due to the easy access it offered. Now, with the no trade agreement in place, they are being forced to rethink their export strategies and explore non-EU markets. Mustafa et al. (2020) go in-depth on the impacts of Brexit on the European Union from a political and economic perspective by investigating the multifaceted relationships between political dynamics and the factors that determine the economics of the new state. Their research brings out the significance of political and economic aspects that Brexit must be taken into consideration while scrutinizing its implications. Brexit has induced a reconsideration of the UK’s regulatory framework (Buesa et al., 2020). In the split between UK regulations and EU standards, there might be a negative impact on trade flows and an impediment to market access. Brexit supporters are enthusiastic about the goal of getting rid of red tape and the presence of less bureaucracy. However, the companies will be faced with the situation of having to operate in an environment with two different regulation systems. Moreover, the UK may lose its ability to influence the EU’s global regulatory standards outside the EU, which may eventually hinder its competitiveness in global markets. Besides having everything to do with negotiating mutual recognition agreements and equivalence arrangements with the EU and other trading partners, the regulatory environment adds another layer of complexity to the business landscape, thereby adding to uncertainties for businesses to a greater degree.
Hudson (2022), however, dissects “levelling up” after Brexit and delineates “economic realism” or “political opportunism.” Besides capital and investment movement, Brexit has affected the UK domestic market the most. The overall environment surrounding the upcoming UK-EU trade negotiations could be better on investor sentiments and thus declined levels of foreign direct investments. The multinational firms, and especially those in the banking sector, have moved some part of their operations to the EU member states in order to stay in the single market. Furthermore, Brexit has likewise brought about a rethinking of the UK’s investment potential among investors (Hudson, 2022). The pound sterling’s depreciation in the wake of the Brexit Referendum brought a short-term lift to export activity but also drove up inflation and curtailed people’s purchasing power. The doubt about future trade settlements and guideways for operations is another factor that rigidly inhibits investment in the UK economy.
The impact of Brexit is not limited to trade and investment; the labor market is also affected in this scenario. As Mustafa et al. (2020) stated, Brexit has raised some challenges regarding the future availability of skilled labor and the inability to meet the demand caused by industries that mostly employ migrant workers. The existence of free movement has made it more complex for companies to recruit talent from the EU member states. The deficiency of workers is evident in sectors such as health, agriculture, and hospitality. Again, the problem of the security of the rights of EU citizens living and working in the UK has contributed to a decrease in the level of skilled labor, as many talented people leave the country for more stable conditions and better opportunities abroad. This leakage of skills is a severe problem from a long-term perspective, and it might be the case in industries already confronted with staff shortages.
By considering the effects of Brexit on UK EU regional competitiveness in their research, Thissen et al. (2020) accentuate that the regional aspects of the economy are essential for evaluating the consequences of Brexit. Their analysis supports the idea of regional competitiveness as a factor in economic landscape reconfiguration after Brexit and emphasizes the need for selective national policy intervention to address regional disparities. Brexit has heightened pre-existing regional divergences inside the UK. Developing novel trade relationships and implementing new regulations might affect some countries favorably; however, others will face severe economic issues (Buesa et al., 2020). An example is the North East and the West Midlands regions, which excessively depend on the manufacturing sector and exports to the EU. They are likely to be hit more than other parts in case of trade disruptions and tariffs.
Similarly, nations, especially those that have been used to and dependent on the EU funding and investment, such as Cornwall and South Yorkshire, might need more funding post-Brexit, leading to disparities in their economy. (Thissen et al.,2020) The UK-EU regulatory splitting could also create barriers to trade for local businesses serving supply chains heavily involved in the European market, which would widen regional differences. These regional inequalities will take concerted measures geared to economic diversification, infrastructure development, and innovation. Devolved administrations in Scotland, Wales, and Northern Ireland will spearhead the formation of regional strategies and ensure that the positive side of Brexit and its adverse effects are evenly distributed across the entire country (Thissen et al., 2020). Financial services are a crucial pillar of the United Kingdom economy, providing substantial input into gross domestic product and employment. At the same time, Brexit has given rise to uncertainty over the industry’s ability to compete globally and to access the EU market. Brexit has meant the loss of passporting rights. The same right gave the free movement of UK-based financial institutions across the EU. Due to this, some of the banks and asset managers have chosen to establish subsidiaries or relocate their operations to other EU member states.
Research Design
Proposed Methodology
The method of this research is mainly qualitative analysis through documentary analysis. This involves analyzing the academic literature, governmental and non-governmental reports, and official statistics to better understand the economic impact of Brexit as a whole. This research aims to offer a comprehensive view of Brexit’s economic effects in terms of trade, investment, and economic growth, employing a single-method approach instead of using the complexities and labor intensiveness of a mixed methods method.
Appropriateness of Chosen Methodology
Documentary analysis, being the methodology that accounts for the broadest exploration of economic implications through Brexit, will be the best for analyzing the research question. The examination via documentary analysis will unveil the diversity in the sources of information like academic literature, governmental reports, and statistics. This variety of sources will allow detailed research about different aspects of the economic effect of Brexit. These might be trade flows, investing patterns, as well as economic growth (Pattyn et al., 2021). Next, the documentary analysis will enable us to scoop the subtleties from the completed research and data collection, providing in-depth observation of the intricate interworkings and behaviors at stake. Although surveys and case studies may be alternative methods that also provide answers to our research question, in the present context, we would select documentary analysis because of its advantages (Buesa et al., 2020). While surveys are an excellent tool for getting opinions of society, they might not bring the depth of information usually available in the existing documents and literature. In addition, organizing surveys requires spending much time and money, which is inappropriate considering the restrictions of this research.
Another information channel that can be used is case studies, which give readers an in-depth account of particular instances or justification for the research question. Through case studies, some issues will be uncovered for specific cases, but they may need to address a range of problems like documentary analysis. Due to the many-sidedness of Brexit and the consequences it imposed on the economy, the method that permits the possession of the adjacent sources and viewpoints will be more proper (Pattyn et al., 2021). Therefore, the documentary analysis is picked up as a way that is viable for this research because it can present a comprehensive view of the economic effects of Brexit, draws out diverse perspectives and sources, and unveils deep insights and insights from existing research and data (Buesa et al., 2020). This approach shall be closely related to research questions and goals, which will, in turn, enable us to study the economic consequences of Brexit in a very detailed manner.
Limitations of the Proposed Method
Although document analysis is of great benefit in this particular research, this method also has its drawbacks and should be taken into account. Primarily, a leaning on existing publications and literature might result in a need for lately introduced developments or new developments in the field of the economic effects of Brexit. Given that the situation is dynamic, the data and analysis reports presented during the study may need to be updated or completed at the time of the research work (Hudson, 2022). Furthermore, documentary research relies on the correctness and trustworthiness of the sources under consideration. Bias risk and partial information possibility exist for some pamphlets, which partisan organizations or individuals with a particular interest create. Ensuring the credibility and validity of the sources will be an essential factor in solving this challenge (Mustafa et al., 2020). Limited facilities in the acquisition of relevant books and archaeological material may be another restriction of documentary analysis. Some features of the economic projections after leaving the EU may need to be better researched and overlooked, which might cause an unwarranted outcome or underestimation in several areas. Attempts will be taken to obtain input from various sources and different points of view to lower the impact of the mentioned limit.
Justification for Data Collection Methods
The research being proposed utilizes documentary analysis as the chosen methodology, which incorporates academic literature, official reports from governmental and non-governmental institutions, and data from official statistics. Sources in academic literature will deal with all theoretical factors and empirical studies devoted to the economic consequences of Brexit, contributing to various points of view and analyses available. Results from governmental and civil society boards will be packed with policy documents, research and analysis papers, and an assessment of Brexit’s economic outcomes. As a result, governmental and non-governmental organizations will evaluate different areas of the impact of Brexit (Mustafa et al., 2020). Government reports, including trade statistics, investment data, and economic indicators, will provide quantitative measures to demonstrate the influence of Brexit on critical economic factors. Relevant, credible, and reliant factors will be used to choose the best textbooks. Academic literature will be drawn from leading journals and academic databases as efforts will be made to ensure the quality of the research information. Reviews from governmental bodies and nongovernmental organizations will be utilized based on the reputation and competence of the economic and Brexit UK experts (Thissen et al., 2020). Official figures will be extracted from credible sources such as national statistical offices and international organizations, including the World Bank and the OECD.
Data Analysis
The data gathered from documentary research will be grouped thematically for further analysis. This process includes digging out commonalities, patterns, and linkages that lie within literature, reports, and statistics around the implications of Brexit on the economy. Through information ordering and classification by fundamental economic indicators like trade, investment, and gross economic growth rate, the analysis will enable a strategic checking of how the UK economy has changed after Brexit (Buesa et al., 2020). There will also be a comparative evaluation to assess the variability and likenesses of several sources or points of view that will result in the comprehension of diverse visions of the economic implications of Brexit.
Ethical Concerns
Ethical issues will be dealt with in this research, and as a result, the data will be used responsibly, and the overall academic integrity of the writing will be maintained. All sources of information will be cited and attributed to the source owners alongside other academic standards in the UK (Thissen et al., 2020). Furthermore, the privacy and confidentiality of the people whose names appear in the documents will be preserved, as confidentiality will be regarded with utmost importance. Since the research is conducted without involving humans or any personal data, ethical concerns are primarily related to the proper and transparent use of existing documents and data. Attempts to critically assess the authenticity and trustworthiness of the sources are going to be made to provide the data with due accuracy and validity.
Conclusion
To summarize, the topic of the current research analyses the effect of Brexit on the United Kingdom’s economy. Through the use of a qualitative approach and primary source analysis, this study wants to give society a better understanding of how Brexit has influenced the UK’s economic growth. By closely scrutinizing the current published and official documents, this study is intended to assist the experts in tackling healthcare as one of the significant problems in the UK economy.
References
Buesa, A., García Esteban, C., Kataryniuk, I., Martín Machuca, C., Moreno Sánchez, S. and Roth, M., 2020. Brexit: situation and economic consequences. Economic Bulletin/Banco de España, 4/2020. https://repositorio.bde.es/bitstream/123456789/14282/1/be2004-art40e.pdf
Mustafa, G., Hussain, M. and Aslam, M.A., (2020). Political and Economic Impacts of Brexit on the European Union. Liberal Arts and Social Sciences International Journal (LASSIJ), 4(2), pp.11–23. https://doi.org/10.47264/idea.lassij/4.2.2
Thissen, M., van Oort, F., McCann, P., Ortega-Argilés, R. and Husby, T., 2020. The implications of Brexit for UK and EU regional competitiveness. Economic Geography, 96(5), pp.397-421. https://doi.org/10.1080/00130095.2020.1820862
Hudson, R., (2022). ‘Levelling up in the post-Brexit United Kingdom: Economic realism or political opportunism? Local Economy, 37(1-2), pp.50–65. https://doi.org/10.1177/02690942221099480
Pattyn, V., Gouglas, A. and De Leeuwe, J., 2021. The knowledge behind Brexit. A bibliographic analysis of ex-ante policy appraisals on Brexit in the United Kingdom and the European Union. Journal of European Public Policy, 28(6), pp.821-839. https://doi.org/10.1080/13501763.2020.1772345
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