You are here:

Economics/Impact on UK Economy.


Dear Prof Raza

Will there be Impact on UK Economy after UK has left the European Union?.


Hi Prashant!

Glad to hear from you again, and especially on a very important topic!

My feeling is that there will be an impact on U.K. economy. Here are a few points:

First, there will be a check on unrestricted migration from other EU countries, which in fact is a drain on U.K. economy. There could be an end to the exacerbation of political instability engendered by foreigners coming and going.That had been be a drag on British economy through go-slow in production.

Second, there will be less "under the table" deals between employers and employees in getting jobs done illegally at low wages, causing loss to rightful wage-earners and evasion of taxes causing loss to British exchequer.

Third, the economy of the U.K. can now depend on its own strength, which is better than most other ex-members of the EU, and can show its might.

Fourth, there is a bad side to it. The U.K. will lose the cushion that could be provided by the other European countries in dealing with economic problems.

Fifth, since all the countries are likely to suffer some setback in international trade as there would now require new deals with trading partners, the U.K. may undergo the agony of a temporary economic disorder.

You can ferret out other such reasons. E.g., India's exports may as well suffer, which may have an impact on the British economy.

I hope this serves to give you a lead to get down to further in-depth research.

Best of luck!


All Answers

Answers by Expert:

Ask Experts


Eklimur Raza


It appears some students in this website are confused about elasticity of demand and the slope of the demand curve when they are trying to figure out why rectangular hyperbola comes up in case of unitary demand curve. First, they don't know that RH can be depicted in a positive quadrant of price,quantity plane. Secondly, they make the mistake that the slope of RH is constant at -1. Two points could help them: first, e=1 at each and every point of the RH, because the tangent at any point shows lower segment=upper segment (another geometric definition of e); yet slopes at different points,dQ/dP, are different; second, e is not slope but [(Slope)(P/Q)]in absolute terms. Caveat: only if we measure (log P) along the horizontal axis and (log Q) up the vertical axis, can we then say slope equals elasticity --in which case RH on P,Q plane is transformed into a straight-line demand curve [with slope= -tan 45 deg] on (log Q),(logP) plane, and e= -d(log Q)/d(log P). [By the way, logs are not used in college textbooks --although that is helpful in econometric estimation of elasticity viewed as an exponent of P, when demand equation is transformed into log-linear form.] I have not found the geometrical explanation I have given in any textbook followed in undergraduate and college classes in Canada (including the book followed in a university where I taught for a short time and in the book followed in George Brown College, Toronto, where I teach.


About 11 years' teaching economics and business studies, and also English, history and elementary French.Practical experience in a development bank, working with international donor agencies like the World Bank and the ADB. Experience in free-lance journalism, including Canada's "National Post."

I teach micro- and macroeconomics at George Brown College (continuing education), Toronto, ON, Canada.

Many articles and editorials, on different subjects, in English newspapers. Recently an applied Major Research Paper, based on a synthesis of the Solow growth model and the Lewis two-sector model, has be accepted by Ryerson University, Toronto. Professors Thomas Barbiero and Eric Cam, Ryerson University, accepted the paper.

Master degree in Interantional Economics and Finance and diploma with honours in Business Administration from Canada.

Awards and Honors
Received First Prize in an inter-university Literary Contest.

©2017 All rights reserved.

[an error occurred while processing this directive]