Economic Policy Uncertainty,Financing Constraints And Corporate R&D Investment

After the economic crisis in 2008,the global economy suffers an extended down.The government has published a series of policies in response to the financial crisis while labor productivity growth always lower than the financial crisis that year.The R&D investment of enterprises is the internal power of economy development,and also a prerequisite for economic recovery.Although the implementation of policy has relieved the adverse influence of external shock to economy,frequent policy changes making policies less effective obstruct economy steady progress in long period.Especially based on the huge background of economic globalization,the developing countries the economy step into a "new normal" phase,and they also face a more complex situation of policy uncertainty.Different countries have great differences in policies and face different market environments.So the result of policy uncertainty influencing R&D investment on different types of countries is also different.Therefore,the paper attempts to research the impact of policy uncertainty on enterprise's R&D with different types of countries.Firstly,this paper systematically reviews the relationship among economic policy uncertainty,financing constraints and R&D investment from theoretical research and empirical research,found that most of the existing research from real option theory or strategy option theory to study relationship between economic policy uncertainty and R&D investment.Innovative combine two kinds of theories,this paper analysis the influence of policy uncertainty and R&D investment based on enterprise financing constraints.Secondly,this thesis explores and researches the influence of economic policy uncertainty and R&D investment with different types of financing constraints.Besides,based on the types of financial constraints,this paper establishes the determining mechanism between economic policy uncertainty and specific market conditions in order to clarify how economicpolicy uncertainty influence R&D investment with different countries.Finally,based on panel data of 8583 firms from 20 countries and regions during the period 2007-2016,by analyzing and discussing,this paper get three main conclusions,the results suggest that: first,there is an inverted U shape relationship between economic policy uncertainty and R&D investment and the relationship is more significant in China and developing countries than developed countries.Second,the influence on endogenous financial constraints has lesser impacts than exogenous financial constraints,so the endogenous financial constraints have a significant effect on economic policy uncertainty to R&D investment for all the types of countries.Third,only exogenous financial constraints of developed countries influence significantly on economic policy uncertainty and R&D investment.The influence on developing countries firms by relief of exogenous financing constraints have no apparent effects.At last,this paper put forward some policy advice for the policy makers and enterprise owners.