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The threshold consumption correlation-based approach to international capital mobility: Evidence from advanced and developing countries

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  • Nagayasu, Jun

Abstract

Using the consumption correlation-based criterion, this paper analyzes international capital mobility for both advanced and developing countries. We provide evidence that global capital markets are imperfectly integrated for both advanced and developing countries. However, a clear difference between these groups of countries emerges when their consumption growth has stagnated; in developing countries at such times, the opportunity to smooth their consumption drops dramatically.

Suggested Citation

  • Nagayasu, Jun, 2012. "The threshold consumption correlation-based approach to international capital mobility: Evidence from advanced and developing countries," Structural Change and Economic Dynamics, Elsevier, vol. 23(3), pages 256-263.
  • Handle: RePEc:eee:streco:v:23:y:2012:i:3:p:256-263
    DOI: 10.1016/j.strueco.2012.03.005
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    More about this item

    Keywords

    International capital mobility; Panel data approach; Threshold model; Consumption correlation;

    JEL classification:

    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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