Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/329291 
Year of Publication: 
2025
Citation: 
[Journal:] Economies [ISSN:] 2227-7099 [Volume:] 13 [Issue:] 1 [Article No.:] 11 [Year:] 2025 [Pages:] 1-28
Publisher: 
MDPI, Basel
Abstract: 
This study examines the dynamic interconnectedness of economic policy uncertainty (EPU) among Latin American economies - Brazil, Chile, Colombia, and Mexico - and significant international regions, including the United States, Europe, and Japan, as well as a global EPU index. Using a Time-Varying Parameter Vector Autoregressive (TVP-VAR) model with monthly data, this study reveals the evolving spillover effects and dependencies capturing how uncertainty in one market can transmit across others on both regional and global scales. The findings highlight the significant impact of external EPU, particularly from the U.S. and global EPU sources on Latin America, positioning it as a primary recipient of international uncertainty. These results underscore the need for Latin American economies to adopt resilience strategies - such as trade diversification and regional cooperation - to mitigate vulnerabilities to global shocks. This study offers valuable insights into the mechanisms of economic uncertainty transmission, guiding policymakers in developing coordinated responses to reduce the effects of external volatility and foster regional economic stability.
Subjects: 
economic policy uncertainty (EPU)
spillover effects
Time-Varying Parameter Vector Autoregressive (TVP-VAR)
Latin American economies
international economic interdependencies
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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