Exporters and shocks: The impact of the Brexit vote shock on bilateral exports to the UK

This paper exploits the Brexit referendum as a quasi-natural experiment to investigate effect of exchange rate and uncertainty shocks on export volumes, prices, entry exit. We use transaction-level data for universe exporters in Portugal. Using monthly observations quantity price products exported by same firm buyers UK other countries allows us cleanly identify differential response shock market. find that reduce volume market after shock. document heterogeneous responses across exporters. More productive, import-intensive financially unconstrained react decreasing significantly more their prices so volumes decrease less. also goods with higher elasticity substitution experienced lower reduction volume. The effects are larger durable than non-durable goods. contributed deter probability continuing UK.