Economic policy uncertainty in Latin American economies: regional connectedness and spillover effects of trade policy uncertainty in US and China

We use a TVP-VAR connectedness approach to measure the regional connectedness of economic policy uncertainty across Latin American economies and the spillover effects on the region of US and China's trade policy uncertainty. The findings suggest the US trade policy uncertainty as a driver of uncertainty from the US presidential elections of 2016 to the end of the sample. Moreover, the results indicate the uncertainty concerning Chinese trade policy as a driver of uncertainty since the beginning of the trade tensions with the US in 2018. Latin America received uncertainty regarding the trade policy of the world superpowers mainly from the beginning of the trade tensions.