scholarly journals Effects of Economic Policy Uncertainty on Manufacturing Structural Upgrading: Evidence from China

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Renjing Hu ◽  
Yanyang Yan
Keyword(s):  
Economic Policy ◽  
Panel Data ◽  
Manufacturing Industry ◽  
Policy Uncertainty ◽  
Firm Level ◽  
Economic Policy Uncertainty ◽  
Quantile Regression Model ◽  
Panel Quantile Regression ◽  
Advanced Stages ◽  
China’S Growth

Manufacturing is one of the drivers of China’s growth, realizing structural upgrading is vital to achieve high-quality economic development during periods of economic policy uncertainty. Based on firm-level and province-level panel data from 1997 to 2018, this paper used a fixed effect panel data model and panel quantile regression model to investigate the effect of economic policy uncertainty on structural upgrading in manufacturing. The findings indicate that the effect of economic policy uncertainty on structural upgrading in manufacturing is significantly positive and great in regions at advanced stages of manufacturing structure. The discussion about the results suggests that the mechanism of economic policy uncertainty affecting structural upgrading in manufacturing operates through pushing the manufacturing industry to implement service transformation strategies along with vertical integration.

scholarly journals Impact of Economic Policy Uncertainty on Trade Credit Provision: The Role of Social Trust

2020 ◽  
Vol 12 (4) ◽  
pp. 1601 ◽  
Author(s):  
Peng Liu ◽  
Daxin Dong
Keyword(s):  
Economic Policy ◽  
Fixed Effects ◽  
Trade Credit ◽  
Social Trust ◽  
Alternative Measure ◽  
Policy Uncertainty ◽  
Firm Level ◽  
Economic Policy Uncertainty ◽  
The Impact

This paper explores the impact of economic policy uncertainty (EPU) on trade credit while taking into account the interactive role of social trust. The analysis is based on the panel data econometric model with fixed effects. Using firm-level data across 16 economies from 1995Q1 to 2015Q1, we find that (i) there exists a negative and highly significant relationship between economic policy uncertainty and the provision of trade credit; (ii) this relation is weaker for firms in countries with higher levels of social trust; and (iii) the effects of EPU and social trust are both more substantial for firms in more financially constrained industries. The impact of social trust is not a result of people’s high confidence in government, an effective legal system of enforcing contracts, a high-quality institutional system or an excellent system of protecting shareholders. Our result is robust if we exclude business cycle effects or use an alternative measure of financial constraints.

Dynamic Nexuses between Macroeconomic Variables and Sectoral Stock Indices: Reflection from Indian Manufacturing Industry

2020 ◽  
Vol 45 (3) ◽  
pp. 239-269
Author(s):  
Sumit Kumar Maji ◽  
Arindam Laha ◽  
Debasish Sur
Keyword(s):  
Economic Policy ◽  
Manufacturing Industry ◽  
Price Index ◽  
Wholesale Price ◽  
Real Effective Exchange Rate ◽  
Policy Uncertainty ◽  
Macroeconomic Factors ◽  
Macroeconomic Variables ◽  
Economic Policy Uncertainty ◽  
Stock Indices

Determination of significant sector specific macroeconomic factors under the board manufacturing industry is an important task. In Indian context, using the monthly data on five major manufacturing sector specific indices (such as BSE-Basic Materials, BSE-Consumer Discretionary Goods and Services, BSE-Fast Moving Consumer Goods, BSE-Health Care and BSE-Industrials) and the macroeconomic variables (gold price, index of industrial production, wholesale price index, money supply, foreign portfolio investment ratio (FPIR), rate of interest, real effective exchange rate and crude oil price and economic policy uncertainty) for the period September, 2005 to November, 2016, the present study attempted to explore the significant sector specific macroeconomic variables in long run as well as short run. The empirical results obtained by applying the ARDL-UECM model suggested that economic policy uncertainty, FPIR and price factor were observed to be the most important determinants of all the five sectoral stock indices for the study period.

Economic policy uncertainty and China’s growth-at-risk

2021 ◽  
Vol 70 ◽  
pp. 452-467
Author(s):  
Xin Gu ◽  
Xiang Cheng ◽  
Zixiang Zhu ◽  
Xiang Deng
Keyword(s):  
At Risk ◽  
Economic Policy ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
China’S Growth

scholarly journals How Does Economic Policy Uncertainty Affect CO2 Emissions? A Regional Analysis in China

2021 ◽  
Author(s):  
Yan Liu ◽  
Zepeng Zhang
Keyword(s):  
Economic Policy ◽  
Panel Data ◽  
Environmental Regulation ◽  
Regional Analysis ◽  
Policy Implications ◽  
Kuznets Curve ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
Explanatory Variables ◽  
The Impact

Abstract More recently, the COVID-19 pandemic outbreak has created massive economic policy uncertainty (EPU). EPU and its economic fallout have been a hot topic of study, however, the impact of EPU on CO2 emissions has been seldom addressed to date. This paper investigates the direct impact of the EPU on CO2 emissions and indirect effect via the environmental regulation at the national and regional levels using the panel data model and provincial panel data from 2003 to 2017 in China. The empirical results show that the central region is the most special one, which all explanatory variables except energy consumption are all non-significant even at the 10% level. For other samples, there is a significant positive correlation between EPU and CO2 emissions, whether in the national or regional level. Additionally, environmental regulation alone can achieve the purpose of curtailing carbon emissions. However, when the EPU is taken into consideration, environmental regulation exerts a significantly positive effect on CO2 emissions, leading to unintended increase in emissions. Moreover, the Environmental Kuznets Curve (EKC) hypothesis was confirmed in the national and eastern samples, while CO2 emissions increase monotonically as economic level grows for western datasets. Based on the overall findings, some policy implications were put forward.

scholarly journals Measuring Economic Policy Uncertainty*

2016 ◽  
Vol 131 (4) ◽  
pp. 1593-1636 ◽  
Author(s):  
Scott R. Baker ◽  
Nicholas Bloom ◽  
Steven J. Davis
Keyword(s):  
Economic Policy ◽  
Stock Price ◽  
Price Volatility ◽  
The United States ◽  
Policy Uncertainty ◽  
Firm Level ◽  
Vector Autoregressive ◽  
Economic Policy Uncertainty ◽  
Level Data ◽  
The 1960S

Abstract We develop a new index of economic policy uncertainty (EPU) based on newspaper coverage frequency. Several types of evidence—including human readings of 12,000 newspaper articles—indicate that our index proxies for movements in policy-related economic uncertainty. Our U.S. index spikes near tight presidential elections, Gulf Wars I and II, the 9/11 attacks, the failure of Lehman Brothers, the 2011 debt ceiling dispute, and other major battles over fiscal policy. Using firm-level data, we find that policy uncertainty is associated with greater stock price volatility and reduced investment and employment in policy-sensitive sectors like defense, health care, finance, and infrastructure construction. At the macro level, innovations in policy uncertainty foreshadow declines in investment, output, and employment in the United States and, in a panel vector autoregressive setting, for 12 major economies. Extending our U.S. index back to 1900, EPU rose dramatically in the 1930s (from late 1931) and has drifted upward since the 1960s.

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