The Impact of Policy Uncertainty on Foreign Direct Investment in Services: Evidence From Affiliate‐Level Data and the Role of Regional Trade Agreements
This study examined how foreign direct investment (FDI) in services is affected by regional trade agreement (RTA)‐induced policy uncertainty (i.e., second‐moment uncertainty shocks), which is separated from first‐moment shocks. Policy uncertainty is elicited by examining two different types of reservations regarding...