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

Chi Wei Su, Xiaofeng Liu, Meng Qin and Muhammad Umar

Emerging Markets Finance and Trade, 2024, vol. 60, issue 11, 2579-2593

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.

Date: 2024
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DOI: 10.1080/1540496X.2024.2324201

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