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Cross-country determinants of economic policy uncertainty spillovers

Author

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  • Balli, Faruk
  • Uddin, Gazi Salah
  • Mudassar, Hasan
  • Yoon, Seong-Min

Abstract

This study explores the determinants of cross-country economic policy uncertainty (EPU) spillovers. We find that bilateral factors such as trade and common language play a highly significant role in explaining the magnitude of EPU spillovers. Furthermore, the magnitude of EPU spillovers is higher for countries having higher vulnerability in terms of fiscal, trade, or financial liability imbalances.

Suggested Citation

  • Balli, Faruk & Uddin, Gazi Salah & Mudassar, Hasan & Yoon, Seong-Min, 2017. "Cross-country determinants of economic policy uncertainty spillovers," Economics Letters, Elsevier, vol. 156(C), pages 179-183.
    • Handle: RePEc:eee:ecolet:v:156:y:2017:i:c:p:179-183
    DOI: 10.1016/j.econlet.2017.05.016
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    References listed on IDEAS

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    More about this item

    Keywords

    Spillover index; EPU; bilateral linkages;
    All these keywords.

    JEL classification:

    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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