Mohammad, Masud Alam and Mohammad, Rafiqul Islam (2010): Revisiting the Feldstein-Horioka Hypothesis of savings, investment and capital mobility: evidence from 27 EU countries. Published in: INTERNATIONAL JOURNAL OF ECONOMICS , Vol. 4, No. 1 (1. June 2010): pp. 71-90.
Download (1MB) | Preview
This paper is an attempt to estimate the magnitude of integration for capital mobility among EU economies for the time period 1991-2009. It has been empirically observed that there is strong evidence in favor of higher degree of capital mobility for many EU countries, especially at euro currency period and in euro zone. We conclude that short run and long run capital mobility test based on Feldstein-Horioka (F-H) estimation method is likely to provide a measure of EU capital mobility.]
|Item Type:||MPRA Paper|
|Original Title:||Revisiting the Feldstein-Horioka Hypothesis of savings, investment and capital mobility: evidence from 27 EU countries|
|Keywords:||Savings, Investment, Capital Mobility and EU|
|Subjects:||F - International Economics > F1 - Trade > F15 - Economic Integration
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance
|Depositing User:||Mohammad Masud Alam|
|Date Deposited:||11. Jun 2012 19:32|
|Last Modified:||07. Sep 2015 04:14|
Baxter, M. and Crucini, M.J., 1993, “Explaining saving-investment correlations”, American Economic Review, Vol. No. 83, pp. 416 - 436.
Bayoumi, Tamim A., 1990, “Saving-investment correlations”, IMF Staff Paper, No. 37, pp. 360-387.
Blanchard, O. J. and Giavazzi, F., 2002, “Current Account Deficits in the Euro Area: The End of the Feldstein-Horioka Puzzle?” Brookings paper on Economic Activity, No. 2. pp.147-209.
Buch, C. M., 1999, “Capital Mobility and EU Enlargement.”, Weltwirtschaftliches Archive, Vol. No.135, pp.629-656.
Christopoulos, D. K., 2007, “A reassessment of the Feldstein-Horioka hypothesis of perfect capital mobility: evidence from historical data”, Vol. No. 34, pp.273-280.
Coakley, J., Kulasi, F. and Smith, R., 1998, “The Feldstein–Horioka Puzzle and Capital Mobility: A Review”, International Journal of Finance and Economics, Vol. No. 3, pp. 169–188.
Coakley, J., Fuertes, A. M., Spagnolo, F., 2004, “Is the Feldstein–Horioka puzzle history?” Manchester School Working Paper, No. 2 (5), pp.569–590.
Corbin, A., 2001, “Country Specific Effect in the Feldsetin-Horioka Paradox: A Panel Data Analysis”, Economics Letters, Vol. No. 72, pp. 297-302.
Coiteux, M. and Oliver, S., 2000, “The saving-retention coefficient in the long run and in the short run: evidence from panel data”, Journal of International Money and Finance, Vol. No. 19, pp.535–548.
Elliott, G., Rothenberg, T. and Stock, J. H., 1996, “Efficient tests for an autoregressive unit root”, Econometrica, Vol. No. 64, pp. 813-836. European Central Bank, 2007, “Financial Integration in Europe”, March 2007 Report.
Feldstein, M., 1984, “Domestic Saving and International Capital Movements in the Long Run and the Short Run”, NBER Working Paper, No. 947 Feldstein, M.and Bacchetta, P., 1991, “National Saving and International Investment.”, NBER Working Paper, No. 3164
Feldstein, M. and Horioka, C., 1980, “Domestic saving and international capital flows”, Economic Journal, Vol. No. 90, pp.314- 329.
Henry, P. B., 2007, “Capital Account Liberalization: Theory, Evidence, and Speculation”, Journal of Economic Literature, Vol.No. 45, pp. 887–935.
Jansen, W. J., 1998, “Interpreting saving-investment correlations”, Open Economies Review, Vol. No. 9, pp. 205-217
Jansen, J. W and Schulze, G. G., 1996, “Theory Based Measurement of the Saving-Investment Correlation with an application to Norway”, Economic Inquiry, Vol. No. 33, pp. 116-132
Jansen, J. W., 1996, “Estimating Savings-Investment Correlations: Evidence for OECD Countries Based on an Error Correction Model”, Journal of International Money and Finance, Vol. No. 15, pp. 749-781
Kollias, C, Mylonidis, N. and Paleologou, S. M., 2006, “The Feldstein–Horioka puzzle across EU members: Evidence from the ARDL bounds approach and panel data”, International Review of Economics and Finance, Vol. No.17, pp. 380-387.
Krol, R., 1996, “International capital mobility: evidence from panel data”, Journal of International Money and Finance, Vol. No. 15, pp. 467-474.
Mamingi N., 1994, “Savings–Investment Correlations and Capital Mobility in Developing Countries”, World Bank Research Working Paper, No. 1211.
Murphy, R.G., 1984, “Capital Mobility and the Relationship between Saving and Investment Rates in OCED Countries”, Journal of International Money and Finance, Vol. No. 3, pp.327-342
Obstfeld, M., 1986, “Capital mobility in the world economy: theory and measurement”, Carnegie-Rochester Conference Series on Public Policy, Vol. No. 24, pp. 55-104.
Obstfeld, M. and Taylor, A. M., 2005, “Global capital markets: integration, crisis, and growth”, Cambridge University Press, USA.
Pentecost, E. J., 2008, “Economics of European Integration (Unpublished)”, University of Antwerp, Belgium.
Sachs, J. D., 1981, “The current account and macroeconomic adjustment in the 1970s”, Brookings Papers on Economic Activity, No.1, pp.201-268.
Sinn, S., 1992, “Saving-Investment Correlations and Capital Mobility: On the Evidence from Annual Data”, The Economic Journal, Vol. No.102, pp.1162-1170
Tsung-Wu Ho, 2003, “The saving-retention coefficient and country-size: The Feldstein–Horioka puzzle reconsidered”, Journal of Macroeconomics, Vol. No. 25, pp. 387-396.
Tesar, L. L., 1991, “Saving, investment and international capital flows”, Journal of International Economics, Vol. No. 31, pp.55 -78.