A panel cointegration approach to the investment-saving correlation
This paper augments the empirical literature concerning the Feldstein-Horioka puzzle using non-stationary panel data. Recently developed tests for panel cointegration and panel unit root tests are employed. We find substantial evidence to support the hypothesis of no cointegration in this panel, implying a high degree of international capital mobility. Our results suggest that tests for cointegration in panel data provides a better methodological focus than the magnitude of saving-retention coefficients.
Volume (Year): 27 (2002)
Issue (Month): 1 ()
|Note:||received: August 1999/Final version accepted: December 2000|
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|Order Information:||Web: http://www.springer.com/economics/econometrics/journal/181/PS2|
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