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Does Economic Policy Uncertainty Affect the Export Technological Sophistication of Manufacturing Industries?

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  • Hu, Yuanhong

Abstract

Based on data from 19 major countries from 2000-2017, this paper examines the impact of economic policy uncertainty on the export technological sophistication of manufacturing industries. The research shows that in the sample period, the export technological sophistication of manufacturing industries varies among countries, with China and India slowly increasing, Germany and Japan still at a high level, and Canada and Greece in a downward trend. From the empirical results, the expected mechanism of economic policy uncertainty forces the domestic manufacturing industries industry to accelerate R&D innovation by restraining the "technological spillover" effect of imported intermediate goods and the "financing dependence" effect of domestic credit investment, thus promoting the increase of the export technological sophistication in various countries. For countries with high economic growth rate, high degree of development and high degree of economic freedom, the positive impact of economic policy uncertainty on the export technological sophistication of manufacturing industries is more significant. From the perspective of economic policy uncertainty, the paper examines its impact on the export technological sophistication of manufacturing industries with important policy implications. Strengthening bilateral and multilateral consultations among governments and accelerating R&D innovation of domestic enterprises are effective measures to enhance export competitiveness at present.

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  • Hu, Yuanhong, 2020. "Does Economic Policy Uncertainty Affect the Export Technological Sophistication of Manufacturing Industries?," EconStor Preprints 222931, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:222931
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    References listed on IDEAS

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    1. Hausmann, Ricardo & Hidalgo, Cesar A., 2010. "Country Diversification, Product Ubiquity, and Economic Divergence," Working Paper Series rwp10-045, Harvard University, John F. Kennedy School of Government.
    2. Dani Rodrik, 2006. "What's So Special about China's Exports?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(5), pages 1-19, September.
    3. Handley, Kyle, 2014. "Exporting under trade policy uncertainty: Theory and evidence," Journal of International Economics, Elsevier, vol. 94(1), pages 50-66.
    4. Scott R. Baker & Nicholas Bloom & Steven J. Davis, 2016. "Measuring Economic Policy Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(4), pages 1593-1636.
    5. Brandt, Loren & Van Biesebroeck, Johannes & Zhang, Yifan, 2012. "Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing," Journal of Development Economics, Elsevier, vol. 97(2), pages 339-351.
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    Cited by:

    1. Jingjing Wang & Yan Zhang & Zeeshan Mustafa & Maurizio Canavari, 2022. "Changes in Agri-Food Export Competitiveness Based on the Sophistication Analysis: The Case of Xinjiang, China," Sustainability, MDPI, vol. 14(23), pages 1-18, November.

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    More about this item

    Keywords

    Economic Policy Uncertainty; Export Technological Sophistication; R&D Innovation; Manufacturing Industry; Reflection Method;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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