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International Drivers of Policy Uncertainty in Emerging Economies

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  • Gian Paulo Soave

    (Federal University of Bahia)

Abstract

We investigate whether the international context can affect the economic policy uncertainty in a group of seven emerging market countries. Using a variety of global variables and a Bayesian Panel Vector Autoregression that connects domestic and international variables, we find that the conditions of the global goods market are essential drivers of policy uncertainty. Especially, a central role is played by global uncertainty, with significant and persistent effects coming from both global policy uncertainty and the volatility of global financial markets.

Suggested Citation

  • Gian Paulo Soave, 2020. "International Drivers of Policy Uncertainty in Emerging Economies," Economics Bulletin, AccessEcon, vol. 40(1), pages 716-726.
    • Handle: RePEc:ebl:ecbull:eb-19-00839
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Economic policy uncertainty; Emerging markets; Bayesian panel data;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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