The paper "The Impact of Global Economic Policy Uncertainty on Capital Flows in Emerging Economies", co-authored by Professor Xiaofen TAN, Associate Dean of the School of Finance, Kai ZHANG, a member of the Distinguished Academic Talents Training Project of the School of Finance, and Yaying GENG, a doctoral student, was published in “Finance & Trade Economics”, Pages 35-49, No. 3, Volume 39, in 2018.

Abstract: Based on the quarterly data of 33 emerging economies from 1997 to 2013，we employ the global EPU index developed by Baker and others ( 2016) to examine its impact on capital flows in emerging economies. We find the effect of economic policy uncertainty to be non-linear. When the economic policy uncertainty is low，the impact is very significant，and vice versa. The difference in interest rate becomes the most important factor. Further study shows after the financial crisis，the impact of economic policy uncertainty on capital flows decreases. Besides，the impact of economic policy uncertainty on securities investment and other investment is significant， but small on direct investment. The findings imply that the government should maintain macroeconomic stability，increase policy transparency and predictability，and avoid the adverse impact of large outflows and inflows on the economy.

Keywords: Emerging Market Economies; Capital Flows; Economic Policy Uncertainty