Trade Policy Uncertainty and Medical Innovation: Evidence from Developing Nations

This study explores the influence of trade policy uncertainty on medical innovation investment in developing nations from 1980 to 2020, with a focus period COVID-19. We used exogenous and heterogeneous exposure trade-policy-uncertainty resolutions countries’ adjustments, which reduced tariff hikes imported goods double difference-in-differences method. ARDL PVAR has been studied for long-run short-run analyses. The findings revealed that reducing boosts beyond patent filings margin reaction exports. Long-term impacts sectoral patterns, governmental changes, foreign technology entering have little effect findings. paper also shows long-term link between innovation, uncertainty, research-and-development spending. Innovation’s negative response shock research development’s positive corroborates bidirectional unidirectional causality. contributes terms countries and, most importantly, trends contemporaneous given inflow technology, importance recent times.