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International capital mobility: An alternative test based on intertemporal current account models

Listed author(s):
  • Huang, Chao-Hsi

This paper examines international capital mobility by estimating intertemporal current account models for nine major industrialized countries. To account for the large fluctuations of oil prices (the terms-of-trade) and their effects on the current account, an intertemporal current account model incorporating such effects is devised. The model estimation reveals significant terms-of-trade effects on the current account and, moreover, does not exhibit any "excess capital mobility" found in the previous literature. These results indicate that to achieve a more accurate measure of international capital mobility, a proper account of the terms-of-trade effect is essential.

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Article provided by Elsevier in its journal International Review of Economics & Finance.

Volume (Year): 19 (2010)
Issue (Month): 3 (June)
Pages: 467-482

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Handle: RePEc:eee:reveco:v:19:y:2010:i:3:p:467-482
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620165

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  28. repec:fth:harver:1435 is not listed on IDEAS
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