The Economic Gordian Knot of Brexit: An East Asian Perspective

Quality & Quantity, 53(6), 2797-2820, Forthcoming

29 Pages Posted: 22 Apr 2019 Last revised: 16 Oct 2019

See all articles by Mario Arturo Ruiz Estrada

Mario Arturo Ruiz Estrada

Center of Latin American Studies (CLAS) - University of Malaya; Akademia Ekonomiczno-Humanistyczna w Warszawie; Universidad de San Carlos de Guatemala - Facultad de Ciencias Economicas

Evangelos Koutronas

West Virginia University - Department of Mathematics

Donghyun Park

Asian Development Bank - Economic Research

Date Written: March 21, 2019

Abstract

We evaluate the impact of Brexit on Asian economies using a new index - the TIFTEL-Index (The International Financial-Trade Exchange Leaking Index). The index is based on three main variables, namely (1) international trade exchange marginal rate (∆Τ’), (2) international financial exchange marginal rate (∆σ’), and (3) GDP in real prices growth marginal rate (∆γ). The main objective of this paper is to use the index to analyze and compare pre-Brexit versus post-Brexit international trade and international financial transactions between Asia and Europe. The comparative analysis indicates that Brexit will have only a limited negative effect on the world economy. In addition, Brexit will affect East Asia more than ASEAN.

Keywords: Asia, Brexit, Europe, Economic Modeling, Policy Modeling

JEL Classification: F1, F3, G1

Suggested Citation

Ruiz Estrada, Mario Arturo and Koutronas, Evangelos and Park, Donghyun, The Economic Gordian Knot of Brexit: An East Asian Perspective (March 21, 2019). Quality & Quantity, 53(6), 2797-2820, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3357253 or http://dx.doi.org/10.2139/ssrn.3357253

Mario Arturo Ruiz Estrada (Contact Author)

Center of Latin American Studies (CLAS) - University of Malaya ( email )

R&D Wisma
Kuala Lumpur, Malaysia 50603
Malaysia
0126850293 (Phone)
50603 (Fax)

HOME PAGE: http://www.um.edu.my/

Akademia Ekonomiczno-Humanistyczna w Warszawie ( email )

Okopowa 59, 01-043 Warsaw, Poland
Warsaw, 00-007
Poland
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HOME PAGE: http://https://vizja.pl/

Universidad de San Carlos de Guatemala - Facultad de Ciencias Economicas ( email )

Ciudad Universitaria Zona 12
Guatemala City, Guatemala city 01012
Guatemala
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HOME PAGE: http://www.usac.edu.gt

Evangelos Koutronas

West Virginia University - Department of Mathematics ( email )

PO Box 6201
Morgantown, WV 26506
United States

Donghyun Park

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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