Whose Policy Uncertainty Matters in the Trade between Korea and the U.S.?

Since the introduction of news-based policy uncertainty measure, a few studies have looked at its impact on trade flows by using panel models and aggregate data. In this paper we consider short-run long-run response 61 2-digit U.S. exporting industries to Korea 49 Korean measures Korea. We find that both effects exports almost one-third in either direction. long run, however, while nine (with share 9%) are negatively affected only five 6% export share) measure. As for industries, three with 31% positively measure six 7%