The Economics of UK-EU Relations From the Treaty of Rome to the Vote

“The UK-EU economic relationship has never been more important but also more uncertain. For anyone seeking perspective, this book is the essential guide.”         Barry Eichengreen, George C. Pardee and Helen N. Pardee, Profe

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Edited by Nauro F. Campos and Fabrizio Coricelli

The Economics of UK–EU Relations

Nauro F. Campos Fabrizio Coricelli •

Editors

The Economics of UK–EU Relations From the Treaty of Rome to the Vote for Brexit

Editors Nauro F. Campos Brunel University St Albans, UK

Fabrizio Coricelli Paris School of Economics Paris, France

ISBN 978-3-319-55494-5 ISBN 978-3-319-55495-2 DOI 10.1007/978-3-319-55495-2

(eBook)

Library of Congress Control Number: 2017938150 © The Editor(s) (if applicable) and The Author(s) 2017 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover credit: Charlotte Allen/Alamy Stock Photo Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Contents

Introduction

1

Nauro F. Campos and Fabrizio Coricelli

UK Economic Growth Performance in a European Context: Has EU Membership Made Much Difference?

9

Nicholas Crafts

How Does European Integration Work? Lessons from Revisiting the British Relative Economic Decline

47

Nauro F. Campos and Fabrizio Coricelli

European Monetary Integration and the EU–UK Relationship

79

Corrado Macchiarelli

The UK Financial Sector and EU Integration After Brexit: The Issue of Passporting

119

Dirk Schoenmaker

v

vi

Contents

Foreign Direct Investment and the Relationship Between the United Kingdom and the European Union

139

Randolph L. Bruno, Nauro F. Campos, Saul Estrin and Meng Tian

Immigration and the UK–EU Relationship

175

Professor Jonathan Portes

EU Regional Policy and the UK

201

Sascha O. Becker, Peter H. Egger and Maximilian von Ehrlich

Brexit and EU Regulation

229

John Springford

Deep Integration and UK–EU Trade Relations

253

Alen Mulabdic, Alberto Osnago and Michele Ruta

Conclusions