Applying a panel cointegration analysis to data for 19 OECD countries from 1970 to 1999, the paper provides evidence that financial development is significantly related to investment. Specifically, adding indicators of financial development to a standard investment model (Jorgensen, 1967), we...

Applying a panel error correction approach to data for 19 OECD countries from 1970 to 1997, the paper provides evidence that financial development is significantly related to investment levels. DiVerent indicators of financial development are used. The results appear to be strongest for stock...

In several OECD countries, investment rates in the business sector grew strongly in the second half of the 1990s. In some cases, the strength of private investment relative to output growth had raised concerns about the risk of capital overhang and the prospect of a prolonged period of slow...

The authors analyze the dynamics of national saving-investment relationships to determine the degree of international capital mobility. Following Coakley and Kulasi (1997), the authors interpret the close relationship between national saving and investment in the long run as reflecting a...

In several OECD countries, investment rates in the business sector grew strongly in the second half of the 1990s. In some cases, the strength of private investment relative to output growth had raised concerns about the risk of capital overhang and the prospect of a prolonged period of slow...