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Fernández-Villaverde, J., Guerrón-Quintana, P., Kuester, K., & Rubio-Ramírez, J. (2015). Fiscal Volatility Shocks and Economic Activity. American Economic Review, 105, 3352- 3384.
https://doi.org/10.1257/aer.20121236

has been cited by the following article:

• TITLE: Economic Policy Uncertainty and Venture Capital: Evidence from China

  AUTHORS: Aoyang Zhang

  KEYWORDS: China, Economic Policy Uncertainty, Venture Capital

  JOURNAL NAME: Open Journal of Business and Management, Vol.11 No.4, July 12, 2023

  ABSTRACT: Venture capital plays a crucial role in driving the growth of the new economy. However, frequent changes in economic policies can present both opportunities and challenges for venture capital investment. In this study, we conducted an empirical analysis of the relationship between economic policy uncertainty and venture capital investment using provincial-level data from China for the period 2010-2018. Our results indicate that increasing economic policy uncertainty has a negative impact on the growth of venture capital investment, with the magnitude of this effect varying significantly across funding rounds and industries. Further analysis suggests that increasing economic policy uncertainty exacerbates firms’ business risks, which in turn reduces venture capital inflows. Our findings contribute to the literature on the impact of economic policy uncertainty on venture capital investment and provide insights for policymakers seeking to foster the development of venture capital and promote innovation.