Economic Policy Uncertainty and Manufacturing Value-added Exports

Authors

  • Tingting Zhao School of International Trade and Economics, University of International Business and Economics, China

DOI:

https://doi.org/10.5755/j01.ee.33.1.27373

Keywords:

Economic policy uncertainty, Manufacturing value-added exports, Cost to export, Market demand

Abstract

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.

Author Biography

Tingting Zhao, School of International Trade and Economics, University of International Business and Economics, China

Tingting Zhao is a Ph.D. candidate at the School of International Trade and Economics at University of International Business and Economics, China. Her major is international trade. Her present research interests are in the field of e-commerce and international trade.

Additional Files

Published

2022-02-28

Issue

Vol. 33 No. 1 (2022)

Section

Journal General Track