Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319667 
Year of Publication: 
2024
Citation: 
[Journal:] Journal of Economics, Finance and Administrative Science [ISSN:] 2218-0648 [Volume:] 29 [Issue:] 58 [Year:] 2024 [Pages:] 387-409
Publisher: 
Emerald Publishing Limited, Leeds
Abstract: 
Purpose - This research aims to investigate the role of the economic policy uncertainty (EPU) in the outward FDI (OFDI) of the United Kingdom (UK) by considering the institutional quality (IQ) and globalization level of the host country as contextual factors. Design/methodology/approach The UK's OFDI to its twenty partners is analyzed by using the factor augmented model for the 2005-2019 period. Findings The results show that the EPU of the host country has a negative and significant effect on the UK's OFDI. Furthermore, the findings surprisingly illustrate that the globalization level of the host country has a negative and significant impact on the UK's OFDI. In terms of IQ, this study indicates that, while government effectiveness and regulatory quality have a negative and significant influence on the UK's OFDI, the rule of law has a positive and significant effect on the UK's OFDI. Originality/value This will be one of a few studies considering OFDI in the scope of EPU. Also, the contradicting results of the study add unique perspectives to the literature about the relationship between OFDI, globalization, and IQ.
Subjects: 
EPU
Factor augmented model
Globalization
Institutional quality
Outward FDI
JEL: 
C33
D81
E22
F21
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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