skip to content

Faculty of Economics

Journal Cover

Crowley, M. A., Exton, O. and Han, L.

The Looming Threat of Tariff Hikes: Entry into Exporting under Trade Agreement Renegotiation

AEA Papers and Proceedings

Vol. 110 pp. 547-51 (2020)

Abstract: We examine how the looming threat of tariff hikes under a trade agreement renegotiation impacts firm entry into a trading partner's market by exploiting uncertainty over the future UK-EU trade relationship brought about by the June 2016 Brexit referendum. Using the universe of UK export transactions at the firm and product level, we find that uncertainty over future market access to the EU deterred entry modestly in the months immediately after the Brexit vote, but the deterrent effect increased over time.

Keywords: Trade Policy, International Trade Organizations, Empirical Studies of Trade, Economic Integration

JEL Codes: F13, F14, F15

Author links: Meredith Crowley  

Publisher's Link:

Grant: Brexit Project

Papers and Publications

Recent Publications

Porzio, T., Rossi, F. and Santangelo, G. The Human Side of Structural Transformation American Economic Review [2022]

Merrick Li, Z. and Linton, O. A ReMeDI for Microstructure Noise Econometrica [2022]

Ajzenman, N., Cavalcanti, T. and Da Mata, D More than Words: Leaders' Speech and Risky Behavior During a Pandemic American Economic Journal: Economic Policy [2023]

Evans, R. A. and Reiche, S. K. When Is a Contrarian Adviser Optimal? American Economic Journal: Microeconomics [2023]