An Empirical Research on the Relationship between Policy Uncertainty and Corporate Investment in China

Economic policy is the essential tool for the government to intervene and guide the national economy. This paper reviews the research and development related to the impact of economic uncertainty on corporate investment. From the perspective of economic policy uncertainty, this paper combines existi...

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Main Author: QIU, MENGYA
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Online Access:https://eprints.nottingham.ac.uk/54314/
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author QIU, MENGYA
author_facet QIU, MENGYA
author_sort QIU, MENGYA
building Nottingham Research Data Repository
collection Online Access
description Economic policy is the essential tool for the government to intervene and guide the national economy. This paper reviews the research and development related to the impact of economic uncertainty on corporate investment. From the perspective of economic policy uncertainty, this paper combines existing research and adopts the China economic policy uncertainty index jointly released by Stanford University and the University of Chicago to analyse the impact of this particular uncertainty on Chinese enterprises' investment. The research results show that policy uncertainty, in general, has an inhibiting effect on business investment, especially during periods of high economic instability. Further studies have found that non-state-owned enterprises are more sensitive to policy uncertainty than state-owned enterprises. Also, the index has different impacts on enterprises among regions with varying levels of development, with the eastern part are most vulnerable, followed by the central area and the western having the smallest impact. This study provides a reference for the Chinese government to formulate economic policies. The government needs to consider the complex implications of policy uncertainty under different circumstances when using economic methods to promote the development of corporates.
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spelling nottingham-543142022-07-14T13:12:24Z https://eprints.nottingham.ac.uk/54314/ An Empirical Research on the Relationship between Policy Uncertainty and Corporate Investment in China QIU, MENGYA Economic policy is the essential tool for the government to intervene and guide the national economy. This paper reviews the research and development related to the impact of economic uncertainty on corporate investment. From the perspective of economic policy uncertainty, this paper combines existing research and adopts the China economic policy uncertainty index jointly released by Stanford University and the University of Chicago to analyse the impact of this particular uncertainty on Chinese enterprises' investment. The research results show that policy uncertainty, in general, has an inhibiting effect on business investment, especially during periods of high economic instability. Further studies have found that non-state-owned enterprises are more sensitive to policy uncertainty than state-owned enterprises. Also, the index has different impacts on enterprises among regions with varying levels of development, with the eastern part are most vulnerable, followed by the central area and the western having the smallest impact. This study provides a reference for the Chinese government to formulate economic policies. The government needs to consider the complex implications of policy uncertainty under different circumstances when using economic methods to promote the development of corporates. 2018-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/54314/1/4291176%20MENGYAQIU%20Dissertation%20.pdf QIU, MENGYA (2018) An Empirical Research on the Relationship between Policy Uncertainty and Corporate Investment in China. [Dissertation (University of Nottingham only)]
spellingShingle QIU, MENGYA
An Empirical Research on the Relationship between Policy Uncertainty and Corporate Investment in China
title An Empirical Research on the Relationship between Policy Uncertainty and Corporate Investment in China
title_full An Empirical Research on the Relationship between Policy Uncertainty and Corporate Investment in China
title_fullStr An Empirical Research on the Relationship between Policy Uncertainty and Corporate Investment in China
title_full_unstemmed An Empirical Research on the Relationship between Policy Uncertainty and Corporate Investment in China
title_short An Empirical Research on the Relationship between Policy Uncertainty and Corporate Investment in China
title_sort empirical research on the relationship between policy uncertainty and corporate investment in china
url https://eprints.nottingham.ac.uk/54314/