Economic policy uncertainty, contracting frictions and imports sourcing decisions

Li, Jie

doi:10.1016/j.econlet.2021.109772

Cited by 7 publications

(10 citation statements)

References 8 publications

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“…Researchers have discovered an ever-shifting network structure among these assets, with effects on the network that can be felt both locally and internationally. Li (2021) expresses that the volatility spillover between energy and agricultural commodities is asymmetric. With regard to agricultural commodities, there is also a major risk of spillover from energy sources.…”

Section: Commodity Markets and Effect Of Covid-19mentioning

confidence: 99%

RETRACTED ARTICLE: Economic policy uncertainty and commodity market volatility: implications for economic recovery

Xiao

Ayub

2022

Environ Sci Pollut Res

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As a consequence of the COVID-19 pandemic outbreak, most commodities experienced significant price drops, which were expected to continue well into 2020. As a result, the Markov switching model is used to study the influence of policy uncertainty and the COVID-19 pandemic on commodity prices in the USA. Commodity markets are stimulated by economic policy uncertainty, according to results from a two-state Markov switching model. In both high and low regimes, economic policy uncertainty (EPU) influences the commodity market, according to the study's findings. However, in the high regime, EPU has a greater influence on the energy and metal sectors. EPU has different influences on commodity markets in highand low-volatility regimes, according to this study. There is a wide range of correlations between COVID-19 outcomes and EPU and how the prices of natural gas, oil, corn, silver, soybean, copper, gold, and steel respond to these tremors, in both high-and low-volatility tenure. Oil and natural gas, on the other hand, are unaffected by shifts in COVID-19 death rates under either regime. Results show that in both high-and low-volatility regimes, the demand and supply for most commodities are responsive to historical prices.

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Section: Commodity Markets and Effect Of Covid-19mentioning

confidence: 99%

RETRACTED ARTICLE: Economic policy uncertainty and commodity market volatility: implications for economic recovery

Xiao

Ayub

2022

Environ Sci Pollut Res

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“…Like other studies in the literature, the obtained results indicate that the increasing uncertainty in the USA has adversely affected its trading partners due to the trade network that has developed recently (Colombo, 2013;Istiak & Alam, 2020;Dakhlaoui & Aloui, 2016). Furthermore, similar to the studies in this field, it was concluded that developing countries are more vulnerable to increasing uncertainty (Kido, 2018;Li, 2021). Considering the above-mentioned findings, it is seen that the measures taken by countries against a new global crisis, especially after the 2008 crisis, did not yield the expected results.…”

Section: Contagious Effect Of Uncertaintysupporting

confidence: 82%

The contagious effect of economic policy uncertainty in the post-crisis period

Şeker

2023

ECON

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PurposeThis study aims to analyze the contagious effects of economic policy uncertainties in the USA on the economies of its important trading partners, such as Japan, Canada, Mexico and the Eurozone.Design/methodology/approachIn the study using the uncertainty index created by Baker et al. (2016), the interaction between variables was analyzed with structural VAR (SVAR) models.FindingsAccording to the results obtained from the analysis, economic policy uncertainties in the USA had significant effects on the economies of its high-volume trading partners. The internal debt crisis experienced in the Eurozone after the 2008 crisis caused the European Central Bank to respond to the economic policy uncertainties in the USA with contractionary monetary policies, unlike other countries. In addition to these results, Mexico, which has a more fragile economic structure than other countries in the analysis, was more impacted by increasing uncertainties, as expected.Originality/valueThe present study aimed to bring a new perspective to the literature by evaluating the contagiousness of local uncertainty in the globalizing world and the monetary policies implemented as a precaution against this situation on an empirical plane.

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“…Thus, firms may adopt a cautious approach, postponing their decision to enter foreign markets. Moreover, importers may raise fears for successful contract enforcement and thus deteriorate exporters' performance (Li, 2021). We expect that increased EPU of exporting countries would result in increased export costs, and thus result in decreases in manufacturing value-added trade flows.…”

Section: Introductionmentioning

confidence: 98%

Economic Policy Uncertainty and Manufacturing Value-added Exports

Zhao

2022

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This study explores the effects of increased economic policy uncertainty (EPU) in both importing and exporting countries on manufacturing value-added exports. The results show that increased EPU of both importing and exporting countries would result in decreases in manufacturing value-added trade flows, and the negative effect of exporters' EPU is larger than that of importers' EPU. Our results also provide evidence on the influence channels: increased EPU of exporting countries affects manufacturing value-added trade flows primarily through the cost to export, while increased EPU of importing countries primarily through market demand. This conclusion is robust to a series of robustness checks.

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Economic policy uncertainty, contracting frictions and imports sourcing decisions

Cited by 7 publications

References 8 publications

RETRACTED ARTICLE: Economic policy uncertainty and commodity market volatility: implications for economic recovery

RETRACTED ARTICLE: Economic policy uncertainty and commodity market volatility: implications for economic recovery

The contagious effect of economic policy uncertainty in the post-crisis period

Economic Policy Uncertainty and Manufacturing Value-added Exports

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