Research by Mihai Ion, assistant professor of finance in the Eller College of Management at the University of Arizona, was referenced in an August 14 editorial in Bloomberg on how U.S. businesses are stuck in trade war uncertainty.
The article discusses how the President’s current international policy, which resulted in the U.S.-China trade conflict, is failing—and what that means for business investment in the U.S. While some businesses will gain from the trade policy, many more will lose. And more precariously, businesses cannot be certain about how the conflict will play out, resulting in delayed investment decisions.
“Huseyin Gulen of Purdue University and Mihai Ion of the University of Arizona have attempted to quantify the effect of elevated policy uncertainty on corporate investment,” says Michael R. Strain, author of the editorial. “In a 2016 paper, they show that a doubling of the level of political and regulatory uncertainty—after controlling for measures of broader economic uncertainty—is associated with an 8.7 percent decline in investment.” Newer business research suggests, he says, that the trade war follows this pattern.
Ion's research is also referenced in a September 9 article on the implications of the trade war for Arizona businesses in AZ Big Media (from Chamber Business News).
Ion, who joined the Eller College in 2014, conducts research on a variety of finance areas, including policy uncertainty, corporate investment, international trade and trade policy. He earned his PhD from Purdue University.