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International Capital Mobility: Evidence from Panel Data

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  • W. Jos Jansen

Abstract

Krol (1996) reports estimates of the saving-investment correlation, based on panel regressions, that are much lower than commonly found in the literature. This note argues that this low estimate is not related to the panel estimation technique, as Krol claims, but largely to the inclusion of Luxembourg in the sample. Panel estimation only reduces the correlation’s estimate by about 0.12.

Suggested Citation

  • W. Jos Jansen, 2003. "International Capital Mobility: Evidence from Panel Data," International Finance 0310003, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpif:0310003
    Note: Type of Document - pdf; prepared on Win98; to print on HP, A4 page format; pages: 8; figures: included. Final version, October 1999 (Journal of International Money and Finance)
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    References listed on IDEAS

    as
    1. Pesaran, M. Hashem & Smith, Ron, 1995. "Estimating long-run relationships from dynamic heterogeneous panels," Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July.
    2. Coiteux, Martin & Olivier, Simon, 2000. "The saving retention coefficient in the long run and in the short run: evidence from panel data," Journal of International Money and Finance, Elsevier, vol. 19(4), pages 535-548, August.
    3. Feldstein, Martin & Horioka, Charles, 1980. "Domestic Saving and International Capital Flows," Economic Journal, Royal Economic Society, vol. 90(358), pages 314-329, June.
    4. Georges Als, 1988. "The Nightmare Of Economic Accounts In A Small Country With A Large International Banking Sector," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(1), pages 101-110, March.
    5. Coakley, Jerry & Kulasi, Farida & Smith, Ron, 1996. "Current Account Solvency and the Feldstein-Horioka Puzzle," Economic Journal, Royal Economic Society, vol. 106(436), pages 620-627, May.
    6. Krol, Robert, 1996. "International capital mobility: evidence from panel data," Journal of International Money and Finance, Elsevier, vol. 15(3), pages 467-474, June.
    7. W. Jansen, 1998. "Interpreting Saving-Investment Correlations," Open Economies Review, Springer, vol. 9(3), pages 207-219, July.
    8. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    capital mobility; panel estimation; saving investment correlation;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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