Feldstein-Horioka Bulmacasının OECD Ülkeleri İçin Panel Veri Analiziyle Sınanması

Abstract

The Feldstein-Horioka puzzle express despite increased capital mobility in the World, strong relationship between domestic savings and domestic investments. This study aims to investigate validity of the Feldstein-Horioka puzzle for 28 OECD countries using annual data in period of 1980-2015. In accordance with this purpose, the relationship between domestic savings and domestic investments has been investigated by cross-section dependency tests, unit root tests and cointegration tests. The findings can be summarized as follows: Three different cross-section dependency tests have shown that the variables are cross-section dependence across countries; CADF, CIPS and Panic Attack unit root tests show that the variables have unit root in the level values and they are stationary in the first differences; Long run relationships between variables were investigated by the Durbin-Hausman cointegration test and the LM Bootstrap cointegration test, and the cointegration among these varaible was strongly rejected. This finding indicates that the Feldstein-Horioka puzzle is not valid in the 28 OECD countries for the period of 1980-2015, and that domestic investments in these countries are financed by international capital markets.