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Political uncertainty reduces business investment.
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INSUFFICIENT LEANING
Recorded sources
8 sources for · 0 against
Is it true that political uncertainty reduces business investment?
Unclear. Several peer-reviewed studies, mostly single-country or single-region, report that political or policy uncertainty is associated with lower business investment, business confidence, or higher cost of capital. None of the placed items establishes the general claim at full strength; each covers a narrower population, period, or proxy measure.
Verdict: PARTIAL LEAN · 8 sources for, 0 against · Last checked
Evidence for · 8
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Effects of economic policy uncertainty and political uncertainty on business confidence and investment. (n.d.). cir.nii.ac.jp. https://doi.org/10.1108/jes-12-2020-0582
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More for · 7
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Political uncertainty and corporate investment: Empirical evidence from China. (n.d.). e3s-conferences.org. https://www.e3s-conferences.org/articles/e3sconf/pdf/2021/29/e3sconf_eem2021_03054.pdf
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The impact of political uncertainty on the cost of capital. (2024). doi.org. https://doi.org/10.1007/s11156-023-01236-2
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Kusnadi, K., Djatmika, P., Noerdajasakti, S., & Istiqomah, M. (2026). Corruption, institutional quality and foreign direct investment: a two-decade review of mechanisms, distance and corporate responses. doi.org. https://doi.org/10.1080/23311886.2026.2728754
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The effect of political turnover on corporate ESG performance: Evidence from China. (n.d.). doi.org. https://doi.org/10.1371/journal.pone.0288789
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Impact of uncertainty on economic growth: The role of pro‐market institutions in developing countries. (2024). hal.science. https://doi.org/10.1111/kykl.12408
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Boosting Investment and Growth: The Role of Social Pacts in the Brazilian Automotive Industry. (2007). doi.org. https://doi.org/10.1080/13600810601167629
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Liao, Y., Farooq, U., Alomair, A., & Aljughaiman, A. A. (2026). Entrepreneurship under economic policy uncertainty: empirical insights from G7 countries. doi.org. https://doi.org/10.3846/tede.2026.27787
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