CORRELAÇÃO POUPANÇA-INVESTIMENTO: INDICADOR DE MOBILIDADE DE CAPITAIS OU DE SOLVÊNCIA?

The purpose of this paper is to use the literature which evaluates the external sustainability condition to evaluate the original equation of Feldstein and Horioka. We conclude that the saving-investment correlation calculated using cross-sectional data measures the solvency condition instead of the degree of capital mobility. Error-correction models could be an alternative to distinguish between the long-run correlation, which reflects solvency, and the short-run correlation which could measure capital mobility. Applying these models to a panel of 29 developing countries we obtain evidence of an intermediate degree of capital mobility.