How important are different aspects of uncertainty in driving industrial production in the CEE countries?

The study analyses the impact of different uncertainty shocks on industrial production in the Central and Eastern European countries. The paper provides different uncertainty measures which include: industrial, consumer and financial uncertainty, and, unlike previous studies, cover both external (the euro area) and internal (country-specific) sources of uncertainty. We provide evidence that uncertainty is a multidimensional phenomenon: consumer, industrial and financial uncertainty measures do not co-move. The main finding is that industrial production in the CEE countries negatively responds to external uncertainty shocks, whereas the reactions to internal uncertainty shocks are less clear-cut and depend on the category of uncertainty.