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Applied Economics Letters Volume 7, 2000 - Issue 9
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Original Articles

Regime-switching investment-saving correlation and international capital mobility

Tsung Wu Ho Department of Economics, Shih Hsin University, No. 1, Lane 17, Section 1, Mu-Cha Road, Taipei, 11602, Taiwan
Pages 619-622 | Published online: 06 Oct 2010
 
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Abstract

International capital mobility in Taiwan is tested by estimating the regime-switching investment-saving correlation. A Markov-switching model is applied which allows the samples to be drawn from two different regimes; high mobility and low mobility. Empirical results are investigated and specifications tests are performed.

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