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Saving-investment associations and capital mobility on the evidence from Japanese regional data

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  • Robert Dekle

Abstract

We will examine the size of the Feldstein and Horioka (1980) \"saving-retention coefficient\" in a setting of near perfect capital mobility, Japanese regions. We first find that on total regional saving and investment rate data, inclusive of regional government saving and investment, the estimate of the coefficient is negative. This negative relationship in the total rates across Japanese regions appears to arise from the strong negative association in the government saving and investment rates.

Suggested Citation

  • Robert Dekle, 1995. "Saving-investment associations and capital mobility on the evidence from Japanese regional data," International Finance Discussion Papers 496, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgif:496
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