International mobility of capital in the OECD countries: a robust evidence from panel data estimators

Abstract

This study estimates the Feldstein and Horioka (FH, 1980) model and examines the International Mobility of Capital (IMC) for a balanced panel of 24 OECD countries. The results provide consistent support for moderate mobility of capital and for cointegrating relationship between domestic saving and investment.

Keywords:

• saving
• investment
• capital mobility
• cointegration

JEL Classification:

• C30
• E22
• F32
• F40

Acknowledgements

This research is undertaken under the Griffith University Research Grant (GURG), Griffith Business School, Griffith University, Australia. I am grateful to the Griffith Business School for the research grant for the project.