The impact of economic policy uncertainty on the innovation in China: Empirical evidence from autoregressive distributed lag bounds tests
This study is the first attempt to scrutinize the causal relationship between economic policy uncertainty (EPU) and innovation in the case of China, using the autoregressive distributed lag (ARDL) approach to co-integration approach of innovation accounting for causality analysis. The empirical find...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2018-01-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1080/23322039.2018.1514929 |
| _version_ | 1819297093498437632 |
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| author | Hummera saleem Wen Jiandong Muhammad Bilal Khan |
| author_facet | Hummera saleem Wen Jiandong Muhammad Bilal Khan |
| author_sort | Hummera saleem |
| collection | DOAJ |
| description | This study is the first attempt to scrutinize the causal relationship between economic policy uncertainty (EPU) and innovation in the case of China, using the autoregressive distributed lag (ARDL) approach to co-integration approach of innovation accounting for causality analysis. The empirical findings show that EPU can negatively affect innovation. EPU indicates a significantly negative impact on innovation as well as on the gross domestic product (GDP) growth rate. The combined results based on ARDL, innovation accounting approach (IAA) (variance decompositions and impulse response functions), and fully modified ordinary least square (FMOLS) raise an important point that calls for attention. The point is relating to the causality running from EPU to innovation. The future of China is uncertain, so when the economic uncertainty is higher, it lowers the value of future activities of the economy of China. |
| first_indexed | 2024-12-24T05:08:31Z |
| format | Article |
| id | doaj.art-55a195cbbaaf4728a2a60bc57ca3ed25 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-12-24T05:08:31Z |
| publishDate | 2018-01-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-55a195cbbaaf4728a2a60bc57ca3ed252022-12-21T17:13:46ZengTaylor & Francis GroupCogent Economics & Finance2332-20392018-01-016110.1080/23322039.2018.15149291514929The impact of economic policy uncertainty on the innovation in China: Empirical evidence from autoregressive distributed lag bounds testsHummera saleem0Wen Jiandong1Muhammad Bilal Khan2Wuhan UniversityWuhan UniversityWuhan UniversityThis study is the first attempt to scrutinize the causal relationship between economic policy uncertainty (EPU) and innovation in the case of China, using the autoregressive distributed lag (ARDL) approach to co-integration approach of innovation accounting for causality analysis. The empirical findings show that EPU can negatively affect innovation. EPU indicates a significantly negative impact on innovation as well as on the gross domestic product (GDP) growth rate. The combined results based on ARDL, innovation accounting approach (IAA) (variance decompositions and impulse response functions), and fully modified ordinary least square (FMOLS) raise an important point that calls for attention. The point is relating to the causality running from EPU to innovation. The future of China is uncertain, so when the economic uncertainty is higher, it lowers the value of future activities of the economy of China.http://dx.doi.org/10.1080/23322039.2018.1514929innovationeconomic policy uncertaintycausality analysis |
| spellingShingle | Hummera saleem Wen Jiandong Muhammad Bilal Khan The impact of economic policy uncertainty on the innovation in China: Empirical evidence from autoregressive distributed lag bounds tests Cogent Economics & Finance innovation economic policy uncertainty causality analysis |
| title | The impact of economic policy uncertainty on the innovation in China: Empirical evidence from autoregressive distributed lag bounds tests |
| title_full | The impact of economic policy uncertainty on the innovation in China: Empirical evidence from autoregressive distributed lag bounds tests |
| title_fullStr | The impact of economic policy uncertainty on the innovation in China: Empirical evidence from autoregressive distributed lag bounds tests |
| title_full_unstemmed | The impact of economic policy uncertainty on the innovation in China: Empirical evidence from autoregressive distributed lag bounds tests |
| title_short | The impact of economic policy uncertainty on the innovation in China: Empirical evidence from autoregressive distributed lag bounds tests |
| title_sort | impact of economic policy uncertainty on the innovation in china empirical evidence from autoregressive distributed lag bounds tests |
| topic | innovation economic policy uncertainty causality analysis |
| url | http://dx.doi.org/10.1080/23322039.2018.1514929 |
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