The spillover effect of global uncertainty through input–output linkage
Bibliographic Data
| ID | 21543552 |
|---|---|
| Authors | Soonchan Park (0000-0001-8389-852X, Department of Economics and International Trade Kongju National University Kongju Korea), Innwon Park (0000-0001-8567-7907, Division of International Studies Korea University Seoul Korea, corresponding author) |
| Year | 2025 |
| Volume | 48 |
| Issue | 2 |
| Pages | 373-401 |
| Publication date | 2025-02-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | World Economy (JOURNAL) |
| Journal identifiers | ISSN: 0378-5920 • E-ISSN: 1467-9701 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/twec.13657 |
| OpenAlex | W4404327718 |
| Language | EN |
| References cited | 37 |
This study examines the cross‐country spillover effects of global uncertainty on domestic value‐added by introducing indices for input‐ and output‐linked uncertainty. Employing a panel fixed‐effect regression model, the analysis covers 70 countries from 1995 to 2019, using the World Uncertainty Index and the OECD Inter‐Country Input–Output Table. Our findings reveal that input‐linked uncertainty from procuring foreign intermediate goods has the most significant negative impact on domestic value‐added. The effects of domestic uncertainty and output‐linked uncertainty from foreign product sales follow this. Additionally, these negative effects exhibit a dynamic cumulative impact over time, rather than being confined to a specific period. Considering both the magnitude and duration of these impacts, the primary transmission pathway of global uncertainty on a country's domestic production activity is through its input linkage. Furthermore, the study identifies country‐specific variations in the ripple effects of global uncertainty. Analysing specific cases such as Korea and China affirms the empirical relevance of our findings to their economic contexts
Biology · Econometrics · Economics · Microeconomics · Spillover effect · Computer Science · Energy, Environment, Economic Growth · Market Dynamics and Volatility · Monetary Policy and Economic Impact · Genetics
| Highly cited | No |
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