Cointegration between Investment and Saving in Selected Asian Countries: ARDL Bounds Testing Procedure

Jiranyakul, Komain and Brahmasrene, Tantatape (2008): Cointegration between Investment and Saving in Selected Asian Countries: ARDL Bounds Testing Procedure.

Abstract

This paper investigates empirically the relationship between savings and investment in Indonesia, Philippines and Thailand by employing the bounds testing procedure. There are not many studies on the Feldstein-Horioka puzzle for the developing countries. Using bounds testing for cointegration, the results do not support a positive correlation between savings and investment in these three Asian countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: Savings, investment, bounds test, cointegration
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C22 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity

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