International capital mobility: a re-visit of Feldstein-Horioka puzzle

Citation

Hassan, Ibrahim Bakari and Mohamed, Azali (2012) International capital mobility: a re-visit of Feldstein-Horioka puzzle. In: National Research & Innovation Conference for Graduate Students in Social Sciences (GS-NRIC 2012), 7-9 Dec. 2012, Mahkota Hotel, Melaka. (pp. 435-444).

Abstract

This paper investigates the status of international capital mobility by reexamining the Felstein-Horioka (1980) puzzle. Data on savings and investment of 51 high-income countries were analyzed using System-GMM of Arellano and Bovver (1995)/ Blundell and Bond (1998). The β of a saving-retention coefficient of the System-GMM reads 0.17 signifying low correlation between the saving and the investment. Contrary to the Felstein-Horioka findings, the result suggests high capital mobility across high-income economies. The study further recommends acknowledging the increasing interrelations among countries in modeling international capital mobility.

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Additional Metadata

Item Type:	Conference or Workshop Item (Paper)
Divisions:	Faculty of Economics and Management
Publisher:	Faculty of Economics and Management, Universiti Putra Malaysia
Keywords:	Capital mobility; Feldstein-Horioka puzzle; Panel GMM
Depositing User:	Nabilah Mustapa
Date Deposited:	03 Apr 2017 07:44
Last Modified:	03 Apr 2017 07:44
URI:	http://psasir.upm.edu.my/id/eprint/51273
Statistic Details:	View Download Statistic

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