BREXIT OPTIONS FROM THE PERSPECTIVE OF ECONOMIC INTEGRATION STAGES

Year 2019, Volume: 8 Issue: 1, 71 - 81, 30.03.2019

Ozlem Toplu Yilmaz

https://doi.org/10.17261/Pressacademia.2019.1016

Abstract

Purpose - This research examines the exit options of the United Kingdom from the European Union and discusses the possible trade relations

between the United Kingdom and the European Union after the exit.

Methodology - In this article, the exit options are discussed from the perspective of the economic integration stages. The monetary union stage

is evaluated by using least squares method.

Findings - The monetary union would not lead to significant changes in the import and export levels of the United Kingdom. Customs Union is

the first best for the United Kingdom as she will have closer trade relations with the European Union, and on the other side, will pursue its own

dependent trade policies against the other countries.

Conclusion - From the perspective of economic integration stages, the first best would be the Customs Union. If both sides do not agree on the

Customs Union, then the second best will be free trade area, in that the UK and the EU can make trade agreements that cover crucial trade

products for both sides.

Keywords

Brexit, single market, economic integration, European Union, customs union

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