The Post-Brexit Paradigm: Investigating the Effects of Foreign Direct Investment on Economic Growth in the United Kingdom

In Europe, the United Kingdom is still one of the most sought-after locations for foreign direct investment (FDI). It is generally agreed that FDI benefits nations since it may lead to the development of new sectors, the improvement of existing ones, the distribution of innovative technologies, and the maintenance of healthy economic growth. The Brexit referendum held in June 2016 ultimately made the United Kingdom leave the European Union. As a result, the United Kingdom has seen a steady drop in FDI during the last seven years. Britain's membership in the European Union formally ended on January 31, 2020. The fundamental goal of this research is to illuminate the critical function of FDI in promoting economic growth. In addition, we want to learn how FDI affects GDP growth after Brexit. This study's results corroborate the role of FDI in determining the development path of the British economy following Brexit. There has been a clear drop in UK FDI after Brexit, supporting our theory that FDI plays a major role in determining GDP growth in the post-Brexit era. In addition, Brexit has had a major depressing effect on growth in the British economy. Although FDI does put some downward pressure on the UK economy, the positive impact of capital investment should be noticed. The Brexit vote has diminished the United Kingdom's allure as a prime location for FDI in Europe. Policymakers must reverse this trend and create conditions that attract FDI if the British economy continues growing