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Saving, investment, and capital mobility among OECD countries

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  • Lori Leachman
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    Abstract

    Historically investigations of the international mobility of capital have studied rates of return on similar assets denominated in different currencies. Recently, however, efforts directed at ascertaining the degree of international capital mobility have examined the relationship between domestic saving and investment rates. The first approach assesses the mobility of groups of financial assets which represent the existing capital stock while the latter actually scrutinizes the mobility of new physical capital. This paper employs the second approach in a times series study of capital mobility among OECD countries. Implementation of four different tests of the saving-investment relationship suggest that physical capital is more mobile than previous studies have indicated. Copyright Kluwer Academic Publishers 1991

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    File URL: http://hdl.handle.net/10.1007/BF01886897
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    Bibliographic Info

    Article provided by Springer in its journal Open Economies Review.

    Volume (Year): 2 (1991)
    Issue (Month): 2 (June)
    Pages: 137-163

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    Handle: RePEc:kap:openec:v:2:y:1991:i:2:p:137-163

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    Web page: http://www.springerlink.com/link.asp?id=100323

    Related research

    Keywords: capital mobility; market integration; saving; investment;

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    Cited by:
    1. Eslamloueyan, Karim & Jafari, Mahbobeh, 2010. "Capital mobility, openness, and saving-investment relationship in Asia," Economic Modelling, Elsevier, vol. 27(5), pages 1246-1252, September.
    2. Pelagidis, Theodore & Mastroyiannis, Tasos, 2003. "The saving-investment correlation in Greece, 1960-1997: implications for capital mobility," Journal of Policy Modeling, Elsevier, vol. 25(6-7), pages 609-616, September.
    3. Moreno, Ramon, 1997. "Saving-investment dynamics and capital mobility in the US and Japan," Journal of International Money and Finance, Elsevier, vol. 16(6), pages 837-863, December.
    4. Alan M. Taylor, 1996. "International Capital Mobility in History: The Saving-Investment Relationship," NBER Working Papers 5743, National Bureau of Economic Research, Inc.
    5. 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.
    6. Herwartz, Helmut & Xu, Fang, 2007. "A functional coefficient model view of the Feldstein-Horioka puzzle," Economics Working Papers 2007,14, Christian-Albrechts-University of Kiel, Department of Economics.
    7. Daniel Levy, 1995. "Investment-saving comovement under endogenous fiscal policy," Open Economies Review, Springer, vol. 6(3), pages 237-254, July.
    8. Mamingi, Nlandu, 1997. "Saving-investment correlations and capital mobility: The experience of developing countries," Journal of Policy Modeling, Elsevier, vol. 19(6), pages 605-626, December.
    9. Lori Leachman, 1994. "Saving, investment, and capital mobility: A comment on Leachman—A reply," Open Economies Review, Springer, vol. 5(1), pages 19-21, March.
    10. Mamingi, Nlandu, 1993. "Savings investment correlations and capital mobility in developing countries," Policy Research Working Paper Series 1211, The World Bank.
    11. S. Venkata SESHAIAH, 2014. "On The Estimation of the Determinants of the Current Account Deficits: A Case of Indian Economy," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 14(1), pages 203-214.

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