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International capital mobility: regional versus global perspective

Author

Listed:
  • Soyoung Kim

    (Seoul National University)

  • Sunghyun Kim

    (Sungkyunkwan University)

  • Yoonseok Choi

    (Korea University)

Abstract

This paper examines the role of regional versus global savings in financing domestic investment to shed light on the role of financial globalization and regionalism in capital markets. Regression results based on six regions with 141 countries reveal that although the role of foreign (global or regional) saving has increased over time, there are regional differences: domestic saving is the major source of investment financing in North America with an increasing role of regional and global savings over time, while regional saving is the main source in Europe. Global saving has been the main source of investment financing in other regions where domestic and regional financial markets are not well developed. However, the role of regional saving has significantly increased in recent years in the Asia-Pacific and in Latin America. Regionalism such as financial and monetary cooperation is likely to have increased the role of regional saving.

Suggested Citation

  • Soyoung Kim & Sunghyun Kim & Yoonseok Choi, 2018. "International capital mobility: regional versus global perspective," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(1), pages 157-176, February.
    • Handle: RePEc:spr:weltar:v:154:y:2018:i:1:d:10.1007_s10290-017-0300-6
    DOI: 10.1007/s10290-017-0300-6
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    More about this item

    Keywords

    Saving-investment correlation; Capital mobility; Regional saving; Global saving;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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