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account balance, budget deficit and investment for the period 1990–2011. The analysis is conducted within the framework of … international capital markets. Yet, investment is found to have a significant impact on the current account balance …
Persistent link: https://www.econbiz.de/10013101030
correlations between savings and investment observed within countries. A large literature has emerged to investigate this issue … answers remain by and large elusive. Since we argue that the savings and investment series in our panel are integrated of … savings and investment. Our particular contributions are (a) to consider the puzzle comprehensively, using both time series …
Persistent link: https://www.econbiz.de/10014068629
Feldstein and Horioka (1980) argued that the correlation of saving and investment in a cross-section of countries may … as a reliable basis for such a test. The intertemporal budget constraint implies that each country`s saving and … investment should be cointegrated over time. Simulations show that the cross-section regressions used in the literature will …
Persistent link: https://www.econbiz.de/10012757102
investment rates observed in OECD countries. We find that once controlling for general equilibrium effects the saving …This paper shows that general equilibrium effects can partly rationalize the high correlation between saving and …
Persistent link: https://www.econbiz.de/10013316585
In this paper we test the well-known hypothesis of Obstfeld and Rogoff (2000) that trade costs are the key to explaining the so-called Feldstein-Horioka puzzle. Using a gravity framework in an intertemporal context, we provide strong support for the hypothesis and we reconcile our results with...
Persistent link: https://www.econbiz.de/10013318280
In this paper, it is argued that the observed high positive correlation between national savings and investment which …
Persistent link: https://www.econbiz.de/10014054167
This paper shows that the Feldsteins & Horioka (1980) test does not measure capital mobility, but just the variability between domestic and external savings. Furthermore, it concludes that the Coakley, Kulasi & Smith (1996) test for current account solvency, is a necessary, but not sufficient,...
Persistent link: https://www.econbiz.de/10014162217
This paper shows that the Feldsteins & Horioka (1980) test does not measure capital mobility, but just the variability between domestic and external savings. Furthermore, it concludes that the Coakley, Kulasi & Smith (1996) test for current account solvency, is a necessary, but not sufficient,...
Persistent link: https://www.econbiz.de/10014162861
This study investigates whether the Feldstein and Horioka (1980) argument on the domestic saving-investment …. The evidence based on the UK annual data from 1948 to 1998 suggests that the long-run relationship between saving and … investment disappears after the estimated endogenous structural break point coinciding with the abolition of foreign exchange …
Persistent link: https://www.econbiz.de/10014134396
This paper estimates the domestic saving-investment correlations for 189 countries in the period 1980-2020 to study if … regression results show that all the saving-investment correlation coefficients are statistically significant at a 1% level and …
Persistent link: https://www.econbiz.de/10014344110