Advanced Search
MyIDEAS: Login to save this article or follow this journal

Saving-Investment Nexus and International Capital Mobility in India: Revisiting Feldstein-Horioka Hypothesis

Contents:

Author Info

  • KHUNDRAKPAM, JEEVAN K.

    ()
    (Reserve Bank of India)

  • RANJAN, RAJIV

    ()
    (Reserve Bank of India)

Abstract

The paper employing ARDL cointegration approach examined the Feldstein-Horioka (FH)(1980) postulate on international capital mobility for India during 1950-51 to 1990-1991 and during 1950-51 to 2006-07. It finds a robust long-run cointegrating relationship between saving and investment rates in India with the former explaining the latter without any feedback, implying lower degree of international capital mobility. Conforming to the F-H hypothesis, the relationship between saving and investment rates was found to be weaker with the inclusion of post-reform period, characterized by a more liberalized regime on capital flows, than during the pre-reform period. In the short-run also the relationship between saving and investment rates was found to be strong, indicating the influence of temporary shocks emanating from business cycle. That the long-run equilibrium relationship between saving and investment rates could not be statistically distinguished from one imply a sustainable current account balance in India.

Download Info

To our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.

Bibliographic Info

Article provided by Department of Economics, Delhi School of Economics in its journal Indian Economic Review.

Volume (Year): 45 (2010)
Issue (Month): 1 ()
Pages: 49-66

as in new window
Handle: RePEc:dse:indecr:0014

Contact details of provider:
Postal: University of Delhi, Delhi 110 007
Phone: 91-11-2766-6533/34/35, 2766-6703/04/05
Fax: +91-11-7667159
Email:
Web page: http://www.ierdse.org/
More information through EDIRC

Order Information:
Email:
Web: http://www.ierdse.org/

Related research

Keywords: Saving; Investment; Cointegration; ARDL;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Khundrakpam, Jeevan Kumar & George, Asish Thomas, 2012. "An Empirical Analysis of the Relationship between WPI and PMI-Manufacturing Price Indices in India," MPRA Paper 50929, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:dse:indecr:0014. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pami Dua).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.