The Feldstein-Horioka puzzle across EU members: Evidence from the ARDL bounds approach and panel data (Journal article)

Kollias, C./ Mylonidis, N./ Paleologou, S. M.


This paper addresses the saving-investment (SI) correlation for the EU 15 member countries, using the ARDL approach and panel regressions. If we accept the Feldstein-Horioka [Feldstein, M. and C. Horioka, 1980, Domestic saving and international capital flows, Economic Journal 90, 314-329.] interpretation of the SI correlation, the evidence from the ARDL approach does not point to any particular direction in terms of country size, or level of development, or economic and capital market structure. Panel regressions yield an S1 coefficient in the range of 0.148-0.157. This finding is attributed to higher capital mobility, lower transaction costs in the international capital markets, and the declining status of long-run current account targeting as a primary government objective. (C) 2006 Elsevier Inc. All rights reserved.
Institution and School/Department of submitter: Πανεπιστήμιο Ιωαννίνων. Σχολή Οικονομικών και Κοινωνικών Επιστημών. Τμήμα Οικονομικών Επιστημών
Keywords: feldstein-horioka puzzle,saving-investment,cointegration,panel,european union,international capital mobility,saving-investment correlations,oecd countries,long-run,cointegration,economy,flows
URI: http://olympias.lib.uoi.gr/jspui/handle/123456789/11323
ISSN: 1059-0560
Link: <Go to ISI>://000258954800003
Appears in Collections:Άρθρα σε επιστημονικά περιοδικά ( Ανοικτά)

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