Olatunji David Adekoya; Ahsan Malik; Hakeem Adeniyi Ajonbadi; Ibrahim Jimoh
Volume 6, Issue 4 , April 2019, , Pages 347-367
Abstract
The looming argument on the decision of the United Kingdom (UK) to leave the European Union (EU) popularly referred to as Brexit is UK's greatest concern today. While business experts and economic analysts have been trying to decipher the potential effects of this decision, many businesses are beginning ...
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The looming argument on the decision of the United Kingdom (UK) to leave the European Union (EU) popularly referred to as Brexit is UK's greatest concern today. While business experts and economic analysts have been trying to decipher the potential effects of this decision, many businesses are beginning to prepare themselves for the worst-case scenario. This study is primarily aimed at investigating the potential economic impact of Brexit on business performance in the United Kingdom with specific reference to the construction industry which serves as one of the UK’s major contributor to output. The methodology, therefore, is based on an epistemological assumption grounded in positivistic philosophy with the use of a deductive and applied research approach. Additionally, both quantitative and qualitative research methods were employed using secondary sources of data. The data was further estimated using a t-Test statistical model to test the significance level between the population means of the variables measured along a time period that covers 2014 to 2018. The variables measured include industry labour employment, interest rate, inflation and exchange rate, output, imports, and exports. The research findings suggest that there are potential adverse effects of Brexit on labour activities within the industry if a favourable deal is failed to be struck. Additionally, external economic factors were deemed to have a very high negative influence on business performance. It was also reported that trading activities which were the core performance measures in the industry were not significantly reactive to Brexit since the leave vote although there are potential threats after the implementation period.
Olatunji David Adekoya; Hakeem Adeniyi Ajonbadi; Ibrahim Jimoh
Volume 6, Issue 3 , March 2019, , Pages 253-273
Abstract
Ongoing research on the uncertainties surrounding Brexit as a form of regional disintegration is a teeming challenge for many of the industries in the United Kingdom, and as such, various researches are being undergone by experts in different fields to analyse the potential effects both positive and ...
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Ongoing research on the uncertainties surrounding Brexit as a form of regional disintegration is a teeming challenge for many of the industries in the United Kingdom, and as such, various researches are being undergone by experts in different fields to analyse the potential effects both positive and negative on the various industries. This research, therefore, aimed to focus mainly on the effect of regional disintegration on industry performance with emphasis on Brexit. The research considers the financial services and insurance industry in the United Kingdom as a case study. To consider the potential effect of regional disintegration, the research examined a 5-year quarterly data trend analysis spanning from 2014 till 2018 which represents two years before and two years after the pronouncement of the referendum in June 2016. The study further adopted a deductive approach while using both quantitative and qualitative research strategies. The data collection method involved the use of secondary data gotten from government reports and statistical bulletins. The variables were grouped into three categories including the macroeconomic factors (inflation, exchange rate and interest rate), trade performance (imports, exports and industry consumer price index), and demand and supply of labour (employment levels). The data analysis was conducted using a t-test statistic to ascertain if there is any significant difference in the population means of the variables. The findings revealed that the macroeconomic factors have more significant adverse effects on the industry's performance, while there are both positive and negative effects of regional integration on trade performance. Lastly, a no-deal outcome is likely to pose a significant threat to the industry’s demand and supply of labour. In general, the findings of the research allude to the fact that regional disintegration has both positive and negative effects on industry performance. Some recommendations were provided based on a no-deal or deal outcome.
