An Appraisal of the International Saving¬ Investment Relation
International capital mobility as a resource allocation issue has been extensively researched. Different methods and statistical approaches have been employed, with most of the findings showing a tendency of savings to remain in the country of origin. Some contradictions were the inevitable result of the continuous evolution of countries toward economic integration in the process of convergence. Some of the theoretical models that try to explain high correlations between saving and investment in the presence of large capital mobility can be criticized. Whether truly stylized facts emerge from such correlations is not well established, nor is it possible to speculate on the issue if the world economy is organized along perfectly competitive lines.
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Volume (Year): 53 (2000)
Issue (Month): 1 ()
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