Saving-investment Dynamics and capital Mobility in the BRICS

Smruti Ranjan Behera

Applied Econometrics and International Development, 2015, vol. 15, issue 1, 5-16

Abstract: This study examines the saving-investment relationship and the extent of capital mobility in the BRICS over the period 1970-2013. However, saving and investment are cointegrated, but the error correction model exhibits structural instability with the onset of different country-specific crisis and over the period of global financial crisis in 2008. The inclusion of interactive dummy variables reveals that current period pass through of saving to investment is negative and statistically significant for the post-1980 period in Brazil, and over 1990s and 2000s in South Africa, indicative of capital mobility. Furthermore, the global financial crisis affects the exchange rate depreciation in Russia.

Keywords: Capital Mobility; Savings; Investment; Error-Correction Model. (search for similar items in EconPapers)
JEL-codes: F21 F32 F34 F41 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.usc.es/economet/reviews/aeid1511.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:15:y:2015:i:1_1

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 ().