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International Capital Mobility in OECD Countries: The Feldstein-Horioka 'Puzzle' Revisited

Author

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  • Khaled A. Hussein

Abstract

We utilise the most recent time series techniques of dynamic OLS and examine international capital mobility across 23 OECD countries. We adopt the saving-investment approach where the endogeneity problem is confronted. Our findings show that capital is remarkably mobile in most countries over the last three decades.

Suggested Citation

  • Khaled A. Hussein, 1997. "International Capital Mobility in OECD Countries: The Feldstein-Horioka 'Puzzle' Revisited," Studies in Economics 9714, School of Economics, University of Kent.
    • Handle: RePEc:ukc:ukcedp:9714
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    Citations

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    Cited by:

    1. Sachsida, Adolfo & Caetano, Marcelo Abi-Ramia, 2000. "The Feldstein-Horioka puzzle revisited," Economics Letters, Elsevier, vol. 68(1), pages 85-88, July.
    2. Georgopoulos, George J. & Hejazi, Walid, 2005. "Feldstein-Horioka meets a time trend," Economics Letters, Elsevier, vol. 86(3), pages 353-357, March.

    More about this item

    Keywords

    Feldstein-Horioka puzzle; saving-investment; cointegration;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

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