Capital Mobility: An Application of Savings-Investment Link for Tunisia
AbstractThe paper examines the degree of capital mobility in Tunisia for 1970 to 2009 period, using Feldstein and Horioka (1980) method of savings and investment comovement. We apply ARDL bound test to assess comovement between savings and investment; and to compute the savings retention ratio with FMOLS and DOLS as complements. The results reveal low capital mobility, in contrary to Maminingi (1997) who note perfect capital immobility in Tunisia. Hence, efforts should be made by the concerned authorities to evolve policies that will mobilize international capital into the country.
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Bibliographic InfoArticle provided by Econjournals in its journal International Journal of Economics and Financial Issues.
Volume (Year): 2 (2012)
Issue (Month): 1 ()
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Tunisia; Savings–Investment; ARDL; Causality;
Find related papers by JEL classification:
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
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