1 option
Trade Uncertainty and Investment in the Euro Area / Christian Ebeke, Jesse Siminitz.
- Format:
- Book
- Government document
- Author/Creator:
- Ebeke, Christian.
- Series:
- IMF Working Papers; Working Paper ; No. 2018/281
- IMF Working Papers
- Language:
- English
- Subjects (All):
- Europe--Economic integration.
- Europe.
- Physical Description:
- 1 online resource (20 pages).
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 2018.
- Summary:
- We analyze the impact of trade policy uncertainty on investment in the euro area. Our identification strategy assumes that countries that are relatively more dependent on global trade networks exhibit a higher sensitivity of investment with respect to trade uncertainty. We find that the investment-to-GDP ratio is on average 0.8 percentage points lower for five quarters following a one standard deviation increase in the level of trade uncertainty. We demonstrate that these results are unlikely to be driven by omitted variables and that they are robust to different measures of trade uncertainty and trade openness. Our analysis suggests that the detrimental effect of trade tensions goes beyond lower trade growth, as uncertainty can reduce investment and the economy’s long-term growth potential.
- Notes:
- Description based on print version record.
- ISBN:
- 9781484392317
- 1484392310
- 9781484392348
- 1484392345
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.