Cointegration of long span saving and investment

Coakley, Jerry; Kulasi, Farida

doi:10.1016/s0165-1765(96)00920-2

Cited by 73 publications

(39 citation statements)

References 7 publications

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“…Coakley and Kulasi (1997) confirm empirically the finding that saving and investment tend to be cointegrated but interpret these co-movements as evidence for current account solvency or an intertemporal budget constraint of an economy rather than imperfect capital mobility. The upshot is that a high (low) correlation of saving and investment in time series studies cannot a priori be taken as evidence of low (high) capital mobility.…”

Section: Measuring Capital Mobilitysupporting

confidence: 73%

Capital mobility and EU enlargement

Buch¹

1999

Weltwirtschaftliches Archiv

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*The EU has recently entered accession talks with five transition economies of eastern Europe. Membership in the EU would require inter alia the full liberalization of capital flows. This paper provides empirical evidence on the openness towards foreign capital that the accession states have attained so far on the basis of the correlation between domestic saving and investment. A comparison with the southern members of the EU shows that the countries under review have reached a similar degree of integration in quantitative terms. Yet, further adjustment in qualitative terms, i.e., in the structure of capital flows, can be expected as the process of accession proceeds. (105 words)

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Section: Measuring Capital Mobilitysupporting

confidence: 73%

Capital mobility and EU enlargement

Buch¹

1999

Weltwirtschaftliches Archiv

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“…Empirical works vary significantly in terms of the methodology employed, as well as the data set and sample periods covered. The Feldstein and Horioka result has been mainly replicated using cross-section regressions (see among others, Feldstein, 1983;Obstfeld, 1995), and panel estimation techniques (Chakrabarty, 2006;Georgopoulos and Hejazi, 2005;Nell and Santos, 2008;Fouquau, Hurlin and Rabaud, 2008;Kollias, Mylonidis andPaleologou, 2008, Coakley andKulasi, 1997;Oh et al 1999). Time-series analysis has provided a wider dispersion of saving-investment coefficients (see among others, Kim, 2001;Kim, Kim and Wang, 2007).…”

Section: Literature Reviewmentioning

confidence: 96%

The Savings-Investment Relationship: Cointegration and Causality Evidence From Uemoa Countries

Esso¹,

Keho²

2010

IJEF

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JEL Classification: C32, E44. AbstractThe relationship between saving and investment has been sharply debated in the empirical literature following the pioneering work of Feldstein and Horioka (1980). This paper contributes to this literature. As opposed to most previous studies, which have used panel estimation methods, we test for cointegration and causality between saving and investment in time-series settings for the UEMOA member countries by using the bounds test for cointegration proposed by Pesaran et al. (2001) and the Granger causality test of Toda and Yamamoto (1995). The results show that domestic saving plays an active role in financing investment in only three countries. For the other four countries, the domestic savings rate and investment rate are not related.

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“…Numerous studies have adopted this approach to measuring capital mobility (e.g., Coakley, Kulasi and Smith, 1996;Coakley and Kulasi, 1997;Hoffman, 2004). Most recently, Pelgrin and Schich (2008) analyze a sample of 20 OECD countries over the period 1960-1999 using a dynamic model that considers the speed of an economy's adjustment to shocks.…”

Section: Saving and Investment Correlationsmentioning

confidence: 99%