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Saving-Investment Relationship and Capital Mobility: Evidence from Chinese Provincial Data, 1980—2007

Author

Listed:
  • Yoshihiro Hashiguchi

    (Kobe University)

  • Shigeyuki Hamori

    (Kobe University)

Abstract

Panel data for individual Chinese provinces from 1980 to 2007 was used to estimate the saving-investment model used by Feldstein and Horioka (1980), shed light on changes to China's domestic capital mobility since the adoption of the Open Door Policy, and determine whether there has been any increase in mobility since 2000. High capital mobility was observed through the first half of the 1980s followed by low capital mobility during the 1990s. Capital mobility began to gradually increase again around 1996, reaching levels similar to those of other leading industrialized countries in the 2000s.

Suggested Citation

  • Yoshihiro Hashiguchi & Shigeyuki Hamori, 2009. "Saving-Investment Relationship and Capital Mobility: Evidence from Chinese Provincial Data, 1980—2007," Economics Bulletin, AccessEcon, vol. 29(3), pages 1981-1989.
    • Handle: RePEc:ebl:ecbull:eb-09-00443
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    References listed on IDEAS

    as
    1. Feldstein, Martin & Horioka, Charles, 1980. "Domestic Saving and International Capital Flows," Economic Journal, Royal Economic Society, vol. 90(358), pages 314-329, June.
    2. Dekle, Robert, 1996. "Saving-investment associations and capital mobility On the evidence from Japanese regional data," Journal of International Economics, Elsevier, vol. 41(1-2), pages 53-72, August.
    3. Shang-Jin Wei & Ms. Genevieve Boyreau-Debray, 2004. "Can China Grow Faster? A Diagnosis of the Fragmentation of Its Domestic Capital Market," IMF Working Papers 2004/076, International Monetary Fund.
    4. Arellano, Manuel, 2003. "Panel Data Econometrics," OUP Catalogue, Oxford University Press, number 9780199245291, Decembrie.
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    Cited by:

    1. Jesus Felipe & Scott Fullwiler & Al-Habbyel Yusoph, 2022. "Why the Feldstein-Horioka "Puzzle" Remains Unsolved," Economics Working Paper Archive wp_1006, Levy Economics Institute.
    2. Wang, Shoukun, 2016. "China's interregional capital mobility: A spatial econometric estimation," China Economic Review, Elsevier, vol. 41(C), pages 114-128.

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    More about this item

    Keywords

    Feldstein-Horioka paradox; Chinese provincial data; capital mobility;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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