Brexit's Influence on the FDI in the European Area

• Author: Sergiu-Lucian Sorcaru, Sergiu Vladescu
• Pages: 361-367

Performance and Risks in the European Economy

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Brexit's Influence on the FDI in the European Area

Sergiu-Lucian Sorcaru1, Sergiu Vladescu2

Abstract: Being on a verge of a historic moment, the first country to leave the EU, we have as main objective the analysis on

the impact in the media on the influence on Brexit’s FDI across the union. Unlike previous studies, our research falls between

two key moments, the decision of the UK to leave the EU, until signing documents. Our research is a qualitative study carried

out by analyzing the content of a set of articles from the period 2016-2017 of the first publications in the UK, both in terms of

readers and granted confidence according to the ATLAS workbench for data processing. The result lies in a better understanding

of the effect that it has Brexit on the FDI both in the UK and in the entire union. The added value of this paper constitutes a

forecast of the situation in the foreign investments medium term in the European space with a legislative support.

Keywords: Great Britain; EU; Greenfield investment; Trade union; Tariff policy

JEL Classification: F10; F16; F21; F23

1. Introduction

Brexit is a media, economic, social shock that has not yet really shown his teeth, considering that the

period analzyed by us is from the moment when the result of the referendum was announced on 23 June

2016 until the signing of the act of exit of the United Kingdom from the European Union on March 29.

Such a process can be carried out in years, so everything that has happened so far with foreign

investments in the kingdom can only be called a result of the media, alongside the precautionary

measures of foreign investors in fear of pound collapse.

The European Union meets for the first time with the desire of a member state to withdraw from this

political and economic union that still includes 28 states. We can all say that we are taking part in a

historical moment that we can observe and we can analyze how a state will withdraw but also the effects

of this decision.

The European Union only in recital of the first world economic power, adding the increased interest of

any country or trade union, let us not forget about the relations built in years, it can be broadly defined

as a whole, but at the same time we must keep in mind that anything big can suffer greatly because of

the details in terms of the fair treatment offered to both the Member States and the partners. We must

not overlook the time factor, the negotiation speed and the tariff policy inside it. Of all these factors that

are some of the most important, the UK and FDI will no longer benefit from in the future.

1 PhD Student, “Alexandru Ioan Cuza” University of Iasi, Faculty of Economics and Business Administration, Economics and

International Affairs Specialization, Romania, Address: 20 Carol I Blvd., Iasi, Romania, Corresponding author:

sorcarusergiu@univ-danubius.ro.

2 Graduate Master, "Dunarea de Jos" University of Galati, Faculty of Legal, So cial and Politica l Sciences, Specialization:

Criminal Sciences and Forensics, Romania, Address: 11 Domneasca Street, Galati, Romania, Tel: +4 0336 130 108, E-mail:

sergiuvladescu@yahoo.com.