01970cas a2200277 a 4500 AALejournalIMF022087 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484388808 1018-5941 BD-DhAAL BD-DhAAL Ebeke, Christian. Trade Uncertainty and Investment in the Euro Area / Christian Ebeke, Jesse Siminitz. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (19 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We analyze the impact of trade policy uncertainty on investment in the euro area. Our identification strategy assumes that countries that are relatively more dependent on global trade networks exhibit a higher sensitivity of investment with respect to trade uncertainty. We find that the investment-to-GDP ratio is on average 0.8 percentage points lower for five quarters following a one standard deviation increase in the level of trade uncertainty. We demonstrate that these results are unlikely to be driven by omitted variables and that they are robust to different measures of trade uncertainty and trade openness. Our analysis suggests that the detrimental effect of trade tensions goes beyond lower trade growth, as uncertainty can reduce investment and the economy's long-term growth potential. Mode of access: Internet International Trade Organizations imf Trade Policy imf Siminitz, Jesse. IMF Working Papers; Working Paper ; No. 2018/281 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/281/001.2018.issue-281-en.xml IMF e-Library