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Capital mobility in Asia: evidence from bounds testing of cointegration between savings and investment.
- Source :
-
Journal of the Asia Pacific Economy . Aug2009, Vol. 14 Issue 3, p262-269. 8p. 2 Charts. - Publication Year :
- 2009
-
Abstract
- This paper explores the international capital mobility in North Asia (South Korea and Taiwan), South Asia (Indonesia, Malaysia, the Philippines, Singapore and Thailand) and India. In particular, the Feldstein-Horioka puzzle, which states domestic investment and savings are highly and positively correlated, was examined for cointegration using an autoregressive distributed lag bounds testing procedure. The results did not show a positive correlation between savings and investment. There was essentially no relationship at level between savings and investment in all eight cases. Thirteen out of 16 structural break tests or 81.25% indicate no structural breaks. The analysis concluded with certain limitations that there is high capital mobility in the economies under study. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 13547860
- Volume :
- 14
- Issue :
- 3
- Database :
- Academic Search Index
- Journal :
- Journal of the Asia Pacific Economy
- Publication Type :
- Academic Journal
- Accession number :
- 41539491
- Full Text :
- https://doi.org/10.1080/13547860902975077