An Investigation of the Feldstein–<scp>H</scp>orioka Puzzle for the Association of Southeast Asian Nations Economies

Wang, Mu-Shun

doi:10.1111/1467-8462.12037

Cited by 8 publications

(6 citation statements)

References 69 publications

(125 reference statements)

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“…In recent years, many economists have been interested in empirically testing whether the Feldstein–Horioka puzzle is valid for developing countries. The studies that are widely cited in the literature in this regard are by Montiel (1994), Jansen (1997), Mamingi (1997), Isaksson (2001), Kasuga (2004), Payne and Kumazawa (2005), Rocha (2006), Ozmen (2007), Murthy (2009), Murthy and Anoruo (2010), Narayan (2005), Basher and Fachin (2013), Wang (2013), Latif, Abdullah, and Razdi (2015), Ford and Horioka (2016), Ma and Li (2016), Bibi and Jalil (2016), Cavallo and Pedemonte (2016), Horioka, Terada‐Hagiwara, and Nomoto (2016), Behera (2017). Most of these studies use cross‐sectional, panel and time‐series data to investigate the FH hypothesis.…”

Section: Literature Surveymentioning

confidence: 99%

The Feldstein–Horioka hypothesis for African countries: Evidence from recent panel error‐correction modelling

Murthy

Ketenci

2020

Int. J Fin Econ

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This paper, by applying the recent panel data error‐correction modelling developed by Gengenbach et al., Panel error correction testing with global stochastic trends, 2008 University of Maastricht, Working Paper, RM/08/051:1–51 and Gengenbach et al., Journal of Applied Econometrics, 2016, 31, 982–1004 tests the validity of the Feldstein–Horioka puzzle (1980) in a panel of 27 African countries for the period 1965–2015. Unlike the existing studies in the literature, this paper, for the first time, addresses several important panel data econometric issues such as slope heterogeneity, cross‐section dependence, unobservable common factors, non‐stationarity and endogeneity that would yield inconsistent and biased estimates of the parameters of interest. Unlike the previous residual‐based error‐correction modelling that has low power, the Gengenbach et al., Panel error correction testing with global stochastic trends, 2008, University of Maastricht, Working Paper, RM/08/051:1–51 and Gengenbach et al., Journal of Applied Econometrics, 2016, 31, 982–1004 estimator explicitly considers structural dynamics in modelling a cointegrated panel that allows for the presence of non‐stationary unobserved common factors. As the GUW modelling depends on the Pesaran Common Correlated Effects Mean Group Estimator (CCEMG; 2006) and the Chudik and Pesaran Dynamic Common Correlated Effects Mean Group Estimator (DCCEMG; 2015), we report the results based on these estimators. The econometric exercises performed in the paper show that slope heterogeneity; cross‐section dependence and non‐stationarity are present in the panel data sample used in the estimation. Estimations yield a relatively low magnitude of the savings retention coefficient for the panel members included in the study with a negative error‐correction term that is statistically significant at the individual and panel levels. The empirical evidence rejects the presence of the Feldstein–Horioka puzzle in the panel of 27 African countries studied.

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Section: Literature Surveymentioning

confidence: 99%

The Feldstein–Horioka hypothesis for African countries: Evidence from recent panel error‐correction modelling

Murthy

Ketenci

2020

Int. J Fin Econ

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“…Bunlardan birincisi, farklı denklemlerdeki bilgilerin bir arada kullanılmasıyla tahminde etkinliğin sağlanması iken, ikincisi ise farklı denklemlerdeki parametrelerin içerdiği kısıtlamaların dikkate alınmasıdır. Zellner (1962) tarafından geliĢtirilen Görünürde ĠliĢkisiz Regresyon modeli aĢağıda denklem sistemleri yardımıyla gösterilmiĢtir. …”

Section: Feldstein-horioka Hġpotezġnġn Geçerlġlġğġ üZerġne Yapilmiġunclassified

“…Görünürde ĠliĢkisiz Regresyon modeli Zellner (1962Zellner ( ve 1963 tarafından geliĢtirilmiĢtir. Zellner (1962: 378), Aitkin'in 1935 yılındaki çalıĢmasında kullandığı GenelleĢtirilmiĢ En Küçük Kareler tekniğini tüm denklem sistemine uygulayarak parametre tahmini gerçekleĢtirmiĢtir.…”

Section: Analġzde Kullanilacak Verġ Setġ Yöntem Ve Analġzbulgulariunclassified

“…Brezilya'da ise tasarruflar yatırımların yaklaĢık % 27'sini, Meksika'da % 19'unu, Rusya'da % 29'unu ve Türkiye'de ise % 18'ini oluĢturmaktadır. 5.DEĞERLENDĠRME VE SONUÇ 1990-2014 yılları arasında geliĢen yedi ekonomi için Feldstein-Horioka hipotezinin geçerliliğinin araĢtırıldığı çalıĢmada, Zellner (1962Zellner ( ve 1963 tarafından geliĢtirilen Görünürde ĠliĢkisiz Regresyon (SUR) tahmin yöntemi kullanılmıĢtır. Görünürde ĠliĢkisiz Regresyon yöntemi, tahminlerinde birimleri bir sistem dahilinde kullanması, yatay kesit bağımlılığını dikkate alması ve her bir birime iliĢkin ayrı ayrı sonuçlar üretmesi anlamında belirli üstünlükleri bulunduğu için tercih edilmiĢtir.…”

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Feldstein-Horioka Hi̇potezi̇ni̇n Görünürde İli̇şki̇si̇z Regresyon Yöntemi̇yle Anali̇zi̇: Geli̇şen Ekonomi̇ler (E7) Üzeri̇ne Bi̇r İnceleme

TUNÇSİPER¹

2016

Sosyal Ekonomik Araştırmalar Dergisi

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The aim of this study is to investigate the Feldstein-Horioka Puzzle for emerging seven economies (E7). In the study that is used annual data for 1990-2014 period, the validity of hypothesis is investigated the Seemingly Unrelated Regression method that was developed by Zellner. According to the findings, Feldstein-Horioka Puzzle is not validated for Brasil, Mexico, Russia and Turkey. Besides, Feldstein-Horioka Puzzle is also validated for China, India and Indonesia.

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“…On the other hand, there are studies that challenge the specification and/or estimation of the FH regression. Since these studies have been thoroughly reviewed, among others, by Coakley, Kulasi, and Smith (1998), Obstfeld and Rogoff (2000); Amornthum (2003) and Wang (2013), here we restrict our attention to a couple of vital topics.…”

Section: Kónyamentioning

confidence: 99%

Saving and investment rates in the BRICS countries

Kónya

2014

The Journal of International Trade & Economic Development

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The first decade of the new millennium witnessed the arrival of five large, fast-growing emerging economies on the global stage. These countries, Brazil, Russia, India, China and South Africa, collectively known as the BRICS countries, have achieved robust growth and steadily outpaced the advanced economies in the last quarter of a century or so. In spite of their recent slowdown, on the basis of their demographics, vast natural resources, physical and human capital accumulation and overall progress, they are likely to remain the engines of global economic growth and development for some time in the future. In the light of the rising role of BRICS countries in the world economy, this paper aims to study the relationship between their domestic saving and investment rates in the vein of Feldstein-Horioka but on a country-by-country basis using time-series econometric techniques. The results suggest that the basic Feldstein-Horioka regression is misspecified for each BRICS country. The preferred autoregressive-distributed-lag specifications imply that capital is not perfectly mobile internationally in any of the BRICS countries, but it is more mobile in South Africa and Russia than in India, Brazil and China.

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An Investigation of the Feldstein–Horioka Puzzle for the Association of Southeast Asian Nations Economies

Cited by 8 publications

References 69 publications

The Feldstein–Horioka hypothesis for African countries: Evidence from recent panel error‐correction modelling

The Feldstein–Horioka hypothesis for African countries: Evidence from recent panel error‐correction modelling

Feldstein-Horioka Hi̇potezi̇ni̇n Görünürde İli̇şki̇si̇z Regresyon Yöntemi̇yle Anali̇zi̇: Geli̇şen Ekonomi̇ler (E7) Üzeri̇ne Bi̇r İnceleme

Saving and investment rates in the BRICS countries

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