This paper reviews the literature on the likely economic consequences of Brexit and considers theudlessons of the Brexit vote for the future of European and global integration. Brexit will make the UnitedudKingdom poorer because it will lead to new barriers to trade and migration between the United Kingdomudand the European Union. Plausible estimates put the costs to the United Kingdom at between 1 and 10udpercent of income per capita. Other European Union countries will also suffer economically, but theirudestimated losses are much smaller. Support for Brexit came from a coalition of less-educated, older, lessudeconomically successful and more socially conservative voters. Why these voters rejected the EuropeanudUnion is poorly understood, but will play an important role in determining whether Brexit proves to beudmerely a diversion on the path to greater international integration or a sign that globalization has reachedudits limits.
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