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International Capital Mobility and Saving-Investment Relationship in the Newly Industrialized Countries

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  • Smruti Ranjan Behera

Abstract

This paper investigates the Feldstein-Horioka coefficients and evaluates the degree of international capital mobility for ten newly industrialized countries (NICs) over the different sub-periods from 1970 to 2010. By applying the Pedroni and Westerlund cointegration tests, we find that saving and investment are indeed cointegrated. The estimated FH coefficients using FMOLS and DOLS are 0.24 and 0.33, respectively, for the period 1970-1980. Furthermore, the estimated FH coefficients reduce from 0.80 (FMOLS) in 1991-2000 to 0.36 (FMOLS) in 1970-1980. The small FH coefficients suggest that international capital mobility increased in the NICs during the sub-periods 1970-1980 and 2001-2010.

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  • Smruti Ranjan Behera, 2015. "International Capital Mobility and Saving-Investment Relationship in the Newly Industrialized Countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 29(3), pages 287-308, May.
    • Handle: RePEc:taf:irapec:v:29:y:2015:i:3:p:287-308
    DOI: 10.1080/02692171.2014.983051
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    2. Ibrahim Bakari Hassan, 2016. "International capital mobility in West Africa: A panel cointegration approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1256023-125, December.

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