Apco liquidating trust
Private sector investment is adversely affected by three kinds of policy uncertainty - macroeconomic uncertainty, sectoral policy uncertainty, and regulatory risk.The role of Economic Policy Uncertainty at the macroeconomic level has been measured globally (Baker et al, 2016).What is the uncertainty associated with investing in India, as seen by Amazon?Multiple guidelines on the same subject can cause delays in the resolution of uncertainty.The fintech steering committee report of the Ministry of Finance is still pending.Each of these reports is a statement about how government agencies are likely to move in the future but these are not legal instruments.These can be investments in new technologies or market segments, or investments in infrastructure.Such investments are particularly important, as they can benefit other firms in the economy, fueling productivity and long-term growth in addition to their business cycle effects.
In the recent Q2 earnings announcement, the Amazon CFO Brian Olsavsky mentioned uncertainty in India's e-commerce policy. Reduced investment in India by private persons is a key part of the present growth challenge.Investment is shaped by macroeconomic uncertainty, sectoral uncertainty, and regulatory risks that firms face.Sectoral-level policy uncertainty can be measured through surveying firms sampled across sectors, asking them about expectations about future growth and costs at various horizons (Altig et al, 2019).For example, firms can report not just their expectations about future profits, but the distribution across the possible profit outcomes that they can expect.
In the original measure, an index is created by quantifying newspaper coverage of policy-related economic uncertainty mentions in the national newspapers, through combinations of keywords related to policy and uncertainty.