Comparing Capital Mobility Across Provincial and National Borders
The persistence of high savings-investment correlations and home-country bias in portfolio construction at the national level is contrasted with new evidence of savings behaviour in Canadian provinces. We confirm that national borders clearly divert flows of capital to domestic investments, but provincial borders have no such effect. In particular, while there is a significant correlation between national savings and investment, among provinces that effect disappears. We discuss the implications for interpreting the distinction between provincial and national borders.
|Date of creation:||Jun 1998|
|Publication status:||published as John F. Helliwell & Ross McKitrick, 1999. "Comparing Capital Mobility across Provincial and National Borders," The Canadian Journal of Economics / Revue canadienne d'Economique, vol 32(5).|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
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