The Impact Of Economic Policy Uncertainty On Fixed Assets Investment In China And Japan

In reality,economic operation faces many uncertainties.With the deepening of economic integration,the ties between countries have become closer and closer.Financial crises,natural disasters,wars,and changes in international relations have brought economic policy uncertainty.Especially since the 2008 global financial crisis,economic policy uncertainty in China and Japan has increased significantly.fixed assets Investmentis an important part of the production activities of the national economy and an important pillar of national economic growth.Japan’s fixedassets investment grew rapidly until the 90 s of the 20 th century,and since then it has begun to decline,and there has been a long-term sluggish growth state.Since2014,while China’s economic policy uncertainty has increased,the growth rate of fixed assets investment has continued to decline.When economic policy uncertainty rises,how to stabilize fixed assets investment so that it is in a reasonable growth range is particularly important.Taking China and Japan as the research objects,this paper uses literature research methods to sort out the research of domestic and foreign scholars on economic policy uncertainty and fixed assets investment,and supplements the definition of economic policy uncertainty.Using theoretical research methods,the relationship between economic policy uncertainty and fixed assets investment is derived.Using the quarterly data of China and Japan from 1999 to 2020,the VAR model was used to verify the reverse change relationship between economic policy uncertainty and fixed assets investment,and the robustness test was carried out through the change of the model and the replacement of the proxy index of economic policy uncertainty,and the results showed that it was robust.Using comparative analysis,the impact of economic policy uncertainty on fixed assets investment in China and Japan is compared.Finally,this paper concludes that economic policy uncertainty in China and Japan is similar to the evolutionary characteristics of fixedassets investment.Economic policy uncertainty in both China and Japan has a negative impact on fixed assets investment.Compared with Japan,under the impact of economic policy uncertainty,China’s fixed assets investment has a greater impulse response and is more severely affected.Moreover,the impact of economic policy uncertainty on fixed assets investment is different: compared with monetary policy uncertainty,fixed asset investment has a greater impact on fiscal policy uncertainty,trade policy uncertainty and exchange rate policy uncertainty.