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The Impact of Economic Policy Uncertainty on China’s Business and Consumer Confidence: A Quantile-Based Analysis

Journal of the Knowledge Economy · Ocak 2025

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The Impact of Economic Policy Uncertainty on China’s Business and Consumer Confidence: A Quantile‑Based Analysis
Journal of the Knowledge Economy · 2025 SSCI
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Makale Bilgileri

DergiJournal of the Knowledge Economy
Yayın TarihiOcak 2025
Özet In an era of economic volatility, consumer and business confidence are in the spotlight in shaping market outcomes. To this end, this study examines the impact of economic policy uncertainty (EPU) on business confidence (BC) and consumer confidence (CC) in China over a period spanning from 2000M1 to 2023M4. This study employs quantile-on-quantile regression and quantile causality approaches for empirical estimations. These approaches can illustrate the overall dependence structure among EPU, BC, and CC, enabling us to identify the underlying asymmetries. The empirical evidence underscores the negative association between EPU and BC in the low, medium, and high quantiles. Regarding the association between EPU and CC, the lower quantiles of EPU negatively influence the lower to medium quantiles of CC. In contrast, the lower quantiles of EPU have a positive association with the high quantiles of CC. In conclusion, the impact of EPU on BC is uniformly negative across the entire distribution, whereas the impact of EPU on CC exhibits asymmetry in China. The study recommends that policymakers should ensure transparent and proactive economic communication to propel business and consumer confidence in China.

Yazarlar (6)

1
Assad Ullah
ORCID: 0000-0001-5365-0224
2
Ibrahim Özmen
ORCID: 0000-0003-2632-4217
3
Azaz Ali Ather Bukhari
4
Amber Pervaiz
5
Waqar Ali Ather Bukhari
6
Hina Shahzadi

Anahtar Kelimeler

Business confidence China Consumer confidence Economic policy uncertainty Quantile causality Quantile-on-quantile regression

Kurumlar

Government of the Punjab
Lahore Pakistan
Hainan Normal University
Haikou China
Selçuk Üniversitesi
Selçuklu Turkey
Universität Kassel
Kassel Germany
University of Education
Lahore Pakistan
University of Narowal
Narowal Pakistan

Metrikler

1
Atıf
6
Yazar
6
Anahtar Kelime

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