Article ID Journal Published Year Pages File Type
5087142 Journal of Asian Economics 2017 11 Pages PDF
Abstract

This paper investigates the effects of foreign and domestic economic policy uncertainty shocks on South Korea via structural VARs. The results show that both foreign and domestic policy uncertainty shocks exert negative and significant impacts on South Korea. Foreign economic policy uncertainty shocks are found to be more dominant than domestic economic policy uncertainty shocks in influencing the Korean output. The results also indicate that economic policy uncertainty that originates from foreign countries is a significant source of disturbance to the Korean economy, but domestic policy uncertainty plays a rather limited role in explaining Korean business fluctuations.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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