Effects of foreign and domestic economic policy uncertainty shocks on South Korea

Chak Hung Jack Cheng ()

Journal of Asian Economics, 2017, vol. 51, issue C, 1-11

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.

Keywords: Economic policy uncertainty; Spillover effect; Business cycle fluctuations; Vector autoregression; Korean economy (search for similar items in EconPapers)
JEL-codes: C32 E32 F42 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (34)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:51:y:2017:i:c:p:1-11

DOI: 10.1016/j.asieco.2017.05.001

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