Capital mobility in developing countries: evidence from panel data

Abstract

Resumo

The Feldstein–Horioka puzzle in Latin American and Caribbean countries: a panel cointegration analysis

“…In the literature, although there is a plethora of published studies dealing with the FH-puzzle for the developed countries, especially the OECD countries, there are not many investigations of the phenomenon for the developing countries, especially for Latin American and Caribbean countries (see, Payne and Kumazawa 2005;De Wet and Van Eyden 2005;Kim et al 2005;Murthy 2005;Sinha 2004;Ho 2002;Isaksson 2001;Rocha 2000;Hussein and Mello 1999;Montiel 1994;Haque and Montiel 1990;Dooley et al 1987;Murphy 1984). This paper, by applying a battery of recently developed first and second-generation panel unit root tests and cointegration techniques, extends the literature on the phenomenon of Feldstein-Horioka puzzle by testing whether the puzzle is valid for a heterogeneous panel of 14 Latin American and five Caribbean countries over the period, 1960-2002.…”