The saving investment relation: a panel data approach
AbstractNumerous studies have confirmed the initial 1980 finding of Feldstein and Horioka of a high positive correlation between saving and investment, a result that is difficult to reconcile with the increasing integration of financial markets. This current study re-examines the correlation between saving and investment with a panel data approach. The empirical analysis concerns 19 OECD countries over the period 1970-1998. Stability tests have led to the identification three periods: 1970-1980, 19817ndash;1990 and 1991-1998 and estimated results show that, when a country-specific effect is introduced, there is no correlation between private saving and national investment and that there is high correlation between public saving and investment.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 8 (2001)
Issue (Month): 8 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEL20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kumar, Saten & Rao, B. Bhaskara, 2009.
"A Time Series Approach to the Feldstein-Horioka Puzzle with Panel Data from the OECD Countries,"
18464, University Library of Munich, Germany.
- Saten Kumar & B. Bhaskara Rao, 2011. "A Time‐series Approach to the Feldstein–Horioka Puzzle with Panel Data from the OECD Countries," The World Economy, Wiley Blackwell, vol. 34(3), pages 473-485, 03.
- Giancarlo Bertocco, 2009.
"The Relationship Between Saving and Credit from a Schumpeterian Perspective,"
Journal of Economic Issues,
M.E. Sharpe, Inc., vol. 43(3), pages 607-640, September.
- Bertocco Giancarlo, 2007. "The relationship between saving and credit from a Schumpeterian perspective," Economics and Quantitative Methods qf07013, Department of Economics, University of Insubria.
- Bahmani-Oskooee, Mohsen & Chakrabarti, Avik, 2005. "Openness, size, and the saving-investment relationship," Economic Systems, Elsevier, vol. 29(3), pages 283-293, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.