SAVINGS AND INVESTMENT IN INDIA: THE FELDSTEIN HORIOKA PUZZLE

S. Venkata Seshaiah

Applied Econometrics and International Development, 2012, vol. 12, issue 2

Abstract: The main objective of this paper is to investigate the degree of integration of the Indian economy into international capital markets using the analytical frame work proposed by Feldstein Horioka. For this purpose we have used the annual data on savings and investment rates over the period 1970-2012. To examine the time series properties of the data we have employed various unit root and co integration test. The results reveal that there in short run there is moderate capital mobility and long run the savings and investment rates are not moving together indicating the absence of Feldstein Horioka puzzle for the Indian Economy.

Keywords: India; Feldstein-Horioka Puzzle; Savings; Investment (search for similar items in EconPapers)
JEL-codes: E2 O53 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.usc.es/economet/reviews/aeid12214.pdf
No.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eaa:aeinde:v:12:y:2012:i:2_14

Ordering information: This journal article can be ordered from
http://www.usc.es/economet/info.htm

Access Statistics for this article

More articles in Applied Econometrics and International Development from Euro-American Association of Economic Development
Bibliographic data for series maintained by M. Carmen Guisan ().