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Making the Worst of a Bad Situation: A Note on Irexit

Author

Listed:
  • Ronald B. Davies

    (University College Dublin)

  • Joseph Francois

    (University of Bern, World Trade Institute)

Abstract

Relative to the rest of the EU, Ireland is especially vulnerable to the fallout from Brexit, both economically and politically. With increasing frustration over the reaction from Brussels, some are suggesting that an Irish exit from the EU would benefit the nation. A key argument for this is that it would allow for reintegration with the UK, thus reinstating close ties with one of its largest trading partners. Using a structurally estimated general equilibrium model, we estimate that such a move would substantially worsen the impacts of Brexit, with lower-skill and agricultural workers being disproportionately affected. This is due to the fact that while the UK is one of Ireland’s most important trading partners, trade with the rest of the EU is much more important.

Suggested Citation

  • Ronald B. Davies & Joseph Francois, 2018. "Making the Worst of a Bad Situation: A Note on Irexit," The Economic and Social Review, Economic and Social Studies, vol. 49(4), pages 455-462.
    • Handle: RePEc:eso:journl:v:49:y:2018:i:4:p:455-462
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    References listed on IDEAS

    as
    1. Eddy Bekkers & Joseph F. Francois & Hugo Rojas†Romagosa, 2018. "Melting Ice Caps and the Economic Impact of Opening the Northern Sea Route," Economic Journal, Royal Economic Society, vol. 128(610), pages 1095-1127, May.
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    4. Charles F. Manski, 2011. "Policy Analysis with Incredible Certitude," Economic Journal, Royal Economic Society, vol. 121(554), pages 261-289, August.
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    Keywords

    Irexit; European Union; Ireland;
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