Industrialization in the face of economic policy uncertainty: cross-country evidence

The objective of this paper is to analyse the cross-country industrialization effects of global economic policy uncertainty (WUI). To this end, ordinary least squares, Driscroll & Kraay and the system generalised method of moment estimators were applied to a large panel of 140 countries over the 1999-2019 period. Overall, results provide strong evidence of negative effects of both WUI and risk of uncertainty on industrialisation. The magnitude of this impact was higher in developing and emerging countries compared to their developed counterparts.