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Is the Uncertainty Economic Policy an Impediment or an Impetus to Technological Innovation?

Author

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  • Chi Wei Su
  • Xiaofeng Liu
  • Meng Qin
  • Muhammad Umar

Abstract

Under the background of increasing economic policy uncertainty (EPU), this paper explores the time-varying impact of EPU on technical innovation (TI) by using the Granger causality test of the bootstrap rolling-window of full and sub-sample. We find the positive impact from EPU to TI indicates that a low EPU will stimulate TI. On the contrary, the positive effect of TI on EPU shows that the rapid development of technology has led to frequent changes in relevant policies, which will cause the rise of EPU.

Suggested Citation

  • Chi Wei Su & Xiaofeng Liu & Meng Qin & Muhammad Umar, 2024. "Is the Uncertainty Economic Policy an Impediment or an Impetus to Technological Innovation?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 60(11), pages 2579-2593, September.
  • Handle: RePEc:mes:emfitr:v:60:y:2024:i:11:p:2579-2593
    DOI: 10.1080/1540496X.2024.2324201
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    Cited by:

    1. Su, Chi-Wei & Yang, Shengyao & Dumitrescu Peculea, Adelina & Ioana BiĊ£oiu, Teodora & Qin, Meng, 2024. "Energy imports in turbulent eras: Evidence from China," Energy, Elsevier, vol. 306(C).
    2. Yang, Shengyao & Zhu, Meng Nan & Yu, Haiyan, 2024. "Are artificial intelligence and blockchain the key to unlocking the box of clean energy?," Energy Economics, Elsevier, vol. 134(C).
    3. Cao, Fangzhi & Su, Chi-Wei & Qin, Meng & Moldovan, Nicoleta-Claudia, 2024. "The investment of renewable energy: Is green bond a safe-haven to hedge U.S. monetary policy uncertainty?," Energy, Elsevier, vol. 307(C).
    4. Wu, Jiawen & Li, Jing-Ping & Su, Chi-Wei, 2024. "Can green bond hedges climate policy uncertainty in the United States: New insights from novel time-varying causality and quantile-on-quantile methods?," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1158-1176.
    5. Wei Su, Chi & Yue Song, Xin & Qin, Meng & LobonĊ£, Oana-Ramona & Umar, Muhammad, 2024. "Optimistic or pessimistic: How do investors impact the green bond market?," The North American Journal of Economics and Finance, Elsevier, vol. 74(C).

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