A Asymmetry in Oil Price Shocks Effect Economic Policy Uncertainty? An Empirical Study from Pakistan

Abstract

This study aims to explore the asymmetry in oil price shocks and its effect on the economic policy uncertainty of Pakistan using NARDL model. The findings reveal a long-run equilibrium relationship between the economic policy uncertainty and oil price shocks. Moreover, the findings show the asymmetric relationship between oil price shocks and economic policy uncertainty in the short and long run. The findings are important for investors looking to invest in Pakistan and the policymakers and regulators