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Consumption patterns as a measure of capital mobility: evidence from some APEC countries

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  • Colin Allitt
  • Imad Moosa

Abstract

Consumption patterns are used to measure capital mobility within the APEC region, both on a bilateral and multilateral basis. Two models are estimated by IV, SUR and OLS using quarterly data for four countries: the US, Japan, Canada and Australia. The results show that the hypothesis of perfect capital mobility is rejected, and some results even indicate autarky. It is argued, however, that the hypothesis of perfect capital mobility is unreasonable and that the consumption criterion is inappropriate because it assumes real interest equalization.

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  • Colin Allitt & Imad Moosa, 1998. "Consumption patterns as a measure of capital mobility: evidence from some APEC countries," Applied Economics, Taylor & Francis Journals, vol. 30(7), pages 885-891.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:7:p:885-891
    DOI: 10.1080/000368498325318
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    1. Arusha Cooray, 2005. "Capital mobility: evidence from four South Asian economies," Applied Economics Letters, Taylor & Francis Journals, vol. 12(9), pages 577-581.
    2. Goh Soo Khoon, 2008. "Consumption correlation and international capital market integration: evidence from Malaysia," Applied Economics Letters, Taylor & Francis Journals, vol. 15(6), pages 489-494.

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