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Saving, investment, and capital mobility among OECD countries

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  • Lori Leachman

Abstract

Historically investigations of the international mobility of capital have studied rates of return on similar assets denominated in different currencies. Recently, however, efforts directed at ascertaining the degree of international capital mobility have examined the relationship between domestic saving and investment rates. The first approach assesses the mobility of groups of financial assets which represent the existing capital stock while the latter actually scrutinizes the mobility of new physical capital. This paper employs the second approach in a times series study of capital mobility among OECD countries. Implementation of four different tests of the saving-investment relationship suggest that physical capital is more mobile than previous studies have indicated. Copyright Kluwer Academic Publishers 1991

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  • Lori Leachman, 1991. "Saving, investment, and capital mobility among OECD countries," Open Economies Review, Springer, vol. 2(2), pages 137-163, June.
    • Handle: RePEc:kap:openec:v:2:y:1991:i:2:p:137-163
    DOI: 10.1007/BF01886897
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    3. Daniel Levy, 1995. "Investment-saving comovement under endogenous fiscal policy," Open Economies Review, Springer, vol. 6(3), pages 237-254, July.
    4. Apergis, Nicholas & Tsoumas, Chris, 2009. "A survey of the Feldstein-Horioka puzzle: What has been done and where we stand," Research in Economics, Elsevier, vol. 63(2), pages 64-76, June.
    5. S. Venkata SESHAIAH, 2014. "On The Estimation of the Determinants of the Current Account Deficits: A Case of Indian Economy," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 203-214.
    6. Joakim Westerlund, 2006. "Testing for Panel Cointegration with Multiple Structural Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(1), pages 101-132, February.
    7. Alan M. Taylor, 1996. "International Capital Mobility in History: The Saving-Investment Relationship," NBER Working Papers 5743, National Bureau of Economic Research, Inc.
    8. Lori Leachman, 1994. "Saving, investment, and capital mobility: A comment on Leachman—A reply," Open Economies Review, Springer, vol. 5(1), pages 19-21, March.
    9. Eslamloueyan, Karim & Jafari, Mahboubeh, 2014. "Financial crisis and saving–investment dynamics in the presence of cross-sectional dependence: The case of East Asia," China Economic Review, Elsevier, vol. 30(C), pages 209-220.
    10. Sinn, Stefan, 1991. "Fisherian and Ricardian trade," Kiel Working Papers 484, Kiel Institute for the World Economy (IfW Kiel).
    11. SESHAIAH, S. Venkata, 2012. "Savings And Investment In India: The Feldstein Horioka Puzzle," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 12(2).
    12. Cáceres, Luis René, 1997. "La relación de largo plazo entre el ahorro y la inversión en la América Latina," El Trimestre Económico, Fondo de Cultura Económica, vol. 64(255), pages 305-317, julio-sep.
    13. Mariam Camarero & Alejandro Muñoz & Cecilio Tamarit, 2021. "50 Years of Capital Mobility in the Eurozone: Breaking the Feldstein-Horioka Puzzle," Open Economies Review, Springer, vol. 32(5), pages 867-905, November.
    14. Mariam Camarero & Juan Sapena & Cecilio Tamarit, 2018. "FH Puzzle in the Eurozone: A time-varying analysis Preliminary Draft," Working Papers 1813, Department of Applied Economics II, Universidad de Valencia.
    15. Eslamloueyan, Karim & Jafari, Mahbobeh, 2010. "Capital mobility, openness, and saving-investment relationship in Asia," Economic Modelling, Elsevier, vol. 27(5), pages 1246-1252, September.
    16. Mamingi, Nlandu, 1997. "Saving-investment correlations and capital mobility: The experience of developing countries," Journal of Policy Modeling, Elsevier, vol. 19(6), pages 605-626, December.
    17. Pelagidis, Theodore & Mastroyiannis, Tasos, 2003. "The saving-investment correlation in Greece, 1960-1997: implications for capital mobility," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 609-616, September.
    18. Holmes, Mark J. & Otero, Jesús, 2014. "Re-examining the Feldstein–Horioka and Sachs' views of capital mobility: A heterogeneous panel setup," International Review of Economics & Finance, Elsevier, vol. 33(C), pages 1-11.
    19. Mamingi, Nlandu, 1993. "Savings investment correlations and capital mobility in developing countries," Policy Research Working Paper Series 1211, The World Bank.
    20. Moreno, Ramon, 1997. "Saving-investment dynamics and capital mobility in the US and Japan," Journal of International Money and Finance, Elsevier, vol. 16(6), pages 837-863, December.
    21. Dash, Santosh Kumar, 2019. "Has the Feldstein-Horioka puzzle waned? Evidence from time series and dynamic panel data analysis," Economic Modelling, Elsevier, vol. 83(C), pages 256-269.
    22. Jos Jansen, W, 1996. "Estimating saving-investment correlations: evidence for OECD countries based on an error correction model," Journal of International Money and Finance, Elsevier, vol. 15(5), pages 749-781, October.

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