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Effect of Economic Policy Uncertainty on Investment (Case Study: OPEC members)

Publish Year: 1400
Type: Conference paper
Language: English
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MMEA01_0987

Index date: 13 June 2022

Effect of Economic Policy Uncertainty on Investment (Case Study: OPEC members) abstract

The main objective of this article was to investigate the effect of economic policy uncertainty on investment in selected OPEC members during 2000-2019. The investment index in this article is affected by fundamental factors such as industry index, GDP and non-fundamental factors such as economic policy uncertainty and real interest rate. Since the functional form of the relationship between the independent variables and the investment is not clear, the model is estimated in a non-parametric way. The study results indicated that GDP and value added industry sector indicators had the greatest effect on the investment index of OPEC members and the emergence and expansion of global economic policy uncertainty led to reduced investment growth in the studied countries. According to the study results, real interest rate increase has led to a reduction in investment.

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Effect of Economic Policy Uncertainty on Investment (Case Study: OPEC members) authors

Marziyeh Esfsndiari

Assistan Professor, Economics Department, University of Sistan and Baluchestan,, Zahedan, Iran