Exports, Investment and Policy Uncertainty

Published: Sep 1, 2016
Abstract
Building on a literature that underscores the value of delaying investment in the face of uncertainty, we study how policy uncertainty in fifteen large economies affects trade flows into these countries. We show that high levels of uncertainty in destination markets are associated with significantly lower exports to those markets. Furthermore, consistent with a model in which firms face irreversible costs to export, we show that this effect is...
Paper Details
Title
Exports, Investment and Policy Uncertainty
Published Date
Sep 1, 2016
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