## Economic Policy Uncertainty in Turkey

_IMF Working Papers, December 10, 2018_

## Source details

**Canonical URL:** [Economic Policy Uncertainty in Turkey](https://www.imf.org/en/publications/wp/issues/2018/12/10/economic-policy-uncertainty-in-turkey-46422)

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- [Markdown version](/en/publications/wp/issues/2018/12/10/economic-policy-uncertainty-in-turkey-46422/index.md)
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## Bibliographic details
- Authors: La-Bhus Fah Jirasavetakul, Antonio Spilimbergo
- Published: December 10, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484387740.001

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### Summary and key findings
- Constructed a news-based economic policy uncertainty (EPU) index for Turkey.
- Assessed how EPU affects Turkish firms using firm-level and sector-level analysis.
- Firms with a high share of irreversible investment are more exposed to policy uncertainty.
- In sectors with large irreversible investment, EPU has a greater effect on:
  - growth,
  - investment,
  - leverage.
- Results are robust to different definitions of investment irreversibility, lag structure, and selection of sectors.

### Methodology
- Main identification strategy: difference-in-differences approach.
- Exploits cross-sectoral variation in the share of irreversible investment to disentangle endogeneity and reverse causality concerns.
- Analysis uses firm-level micro data and sector-level comparisons.

### Subjects, keywords, and technical terms preserved from source
- Subject: Credit default swap, Employment, GDP forecasting, Labor, Money, National accounts
- Keywords: Credit default swap, depreciation rate, diff-in-diff estimation, economic uncertainty, Employment, employment growth, EPU index, firm-level, GDP forecasting, Global, gross investment, investment decisions, investment irreversibility, investment model, leverage strategies, micro data, Policy uncertainty, sector-level, Turkey, WP

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## Content in this bundle

- **Economic Policy Uncertainty in Turkey, WP/18/272, December 2018**
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_Source: https://www.imf.org/en/publications/wp/issues/2018/12/10/economic-policy-uncertainty-in-turkey-46422_