Brexit has opened the process of reverse integration in Europe. As one of the central members of the European Union (EU), withdrawal of the United Kingdom (UK) will inevitably cause turbulence in EU’s economic system and the adjustment of EU’s industrial chain. The Multi Region Input-Output (MRIO) data is used in this paper to study the evolution and adjustment of EU industrial chain after Brexit. Meanwhile, the link prediction theory is used to measure the risk exposure of European Production Network (EPN) under the impact of Brexit. On this basis, the effect of Brexit is analyzed, then opinions and suggestions of how EU industrial chain network dynamically evolves to reduce losses is discussed. Meanwhile, how EU members can make internal adjustments to rebalance the EU economic system are put forward.

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What is the Effect of Brexit on the European Production Network? From the Perspective of Risk Exposure of Industrial Chain

  • Yuxuan Liu,
  • Hongwei Xie,
  • Shuo Jiang,
  • Fangke Liu,
  • Lizhi Xing

摘要

Brexit has opened the process of reverse integration in Europe. As one of the central members of the European Union (EU), withdrawal of the United Kingdom (UK) will inevitably cause turbulence in EU’s economic system and the adjustment of EU’s industrial chain. The Multi Region Input-Output (MRIO) data is used in this paper to study the evolution and adjustment of EU industrial chain after Brexit. Meanwhile, the link prediction theory is used to measure the risk exposure of European Production Network (EPN) under the impact of Brexit. On this basis, the effect of Brexit is analyzed, then opinions and suggestions of how EU industrial chain network dynamically evolves to reduce losses is discussed. Meanwhile, how EU members can make internal adjustments to rebalance the EU economic system are put forward.