Measuring Capital Mobility in the Asia Pacific Rim
Tze-Haw Chan () and
Ahmad Zubaidi Baharumshah ()
MPRA Paper from University Library of Munich, Germany
This study revisits the Feldstein-Horioka puzzle by investigating the saving-investment nexus through the unit root test, cointegration procedure, unrestricted VAR causality, and dynamic OLS (DOLS). Ten Asia Pacific nations of different level of economic development and financial openness were being examined, using data from 1971-1999. Overall, the long run capital mobility is more apparent for four newly industrialised economies while capital flows in ASEAN countries seem to be more restricted (especially Indonesia and Thailand). As for the US and Japan, their long run saving retention coefficients are in the moderate range (0.56 and 0.45). In brief, our findings indicate that the heftiness of Feldstein-Horioka criterion in measuring capital mobility is more subjected to econometric specifications rather than country size alone.
Keywords: Feldstein-Horioka puzzle; capital mobility; Asia pacific region; unrestricted VAR causality; dynamic OLS (search for similar items in EconPapers)
JEL-codes: E20 C32 F21 (search for similar items in EconPapers)
Date: 2003, Revised 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Published in Open Economy Macroeconomics in East Asia-Chapter 9 (2005): pp. 169-195
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/2208/1/MPRA_paper_2208.pdf original version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:2208
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().