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Relations between national public and private savings, domestic investment, and the current account are analyzed with … of aggregate savings on investment is found and government deficits tend to increase current account imbalances … for the US, Japan, Germany and the UK are compared with estimation results from partial modeling approached adopted in the …
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. Amongst our key results we find that saving and investment are cointegrated for Japan; investment causes saving and saving … investment in the case of Japan, a result contrary to FH (1980) …In this paper, we revisit the saving and investment nexus as postulated by Feldstein and Horioka (FH) [Econ. J. 90 …
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