It is causal: revisiting the savings and investment nexus¹

References

• Acemoglu, D. 2015. “Localized and Biased Technologies: Atkinson and Stiglitz’s New View, Induced Innovations, and Directed Technological Change.” The Economic Journal 125 (583): 443–463. doi:10.1111/ecoj.12227.
   Web of Science ®Google Scholar
• Acemoglu, D., and P. Restrepo. 2017. “Secular Stagnation? The Effect of Aging on Economic Growth in the Age of Automation.” The American Economic Review 107 (5): 174–179. doi:10.1257/aer.p20171101.
   Web of Science ®Google Scholar
• Aksoy, Y., H. Basso, R. P. Smith, and T. Grasil. 2019. “Demographic Structure and Macroeconomic Trends.” American Economic Journal: Macroeconomics 11 (1): 193–222. doi:10.1257/mac.20170114.
   Web of Science ®Google Scholar
• Andrews, I., J. Stock, and L. Sun. 2019. “Weak Instruments in IV Regression: Theory and Practice.” Annual Review of Economics 11 (1): 727–753. Forthcoming. doi:10.1146/annurev-economics-080218-025643.
   Google Scholar
• Aspergis, N., and C. Tsoumas. 2009. “A Survey of the Feldstein–Horioka Puzzle: What Has Been Done and Where We Stand.” Research in Economics 63 (2): 64–76. doi:10.1016/j.rie.2009.05.001.
   Google Scholar
• Attanasio, O., L. Picci, and A. E. Scorcu. 2000. “Saving, Growth, and Investment: A Macroeconomic Analysis Using a Panel of Countries.” The Review of Economics and Statistics 82 (2): 182–211. doi:10.1162/003465300558731.
   Web of Science ®Google Scholar
• Bai, Y., and J. Zhang. 2010. “Solving the Feldstein-Horioka Puzzle with Financial Frictions.” Econometrica 78: 603–632.
   Web of Science ®Google Scholar
• Barro, R., N. G. Mankiw, and X. Sala-I-Martin. 1995. “Capital Mobility in Neoclassical Models of Growth.” The American Economic Review 85: 103–115.
   Web of Science ®Google Scholar
• Baxter, M., and M. J. Crucini. 1993. “Explaining Saving-Investment Correlations.” The American Economic Review 83: 416–436.
   Web of Science ®Google Scholar
• Bazzi, S., and M. Clemens. 2013. “Blunt Instruments: Avoiding Common Pitfalls in Identifying the Causes of Economic Growth.” American Economic Journal: Macroeconomics 5 (2): 152–186. doi:10.1257/mac.5.2.152.
   Web of Science ®Google Scholar
• Cavallo, E., and M. Pedemonte, 2015. “What is the Relationship Between National Saving and Investment in Latin America and the Caribbean?” IDB Working Paper IDB-WP-617, Washington: Interamerican Development Bank.
   Google Scholar
• Chudik, A., and M. H. Pesaran. 2015. “Common Correlated Effects Estimation of Heterogeneous Dynamic Panel Data Models with Weakly Exogenous Regressors.” Journal of Econometrics 188 (2): 393–420. doi:10.1016/j.jeconom.2015.03.007.
   Web of Science ®Google Scholar
• Coeurdacier, N., S. Guibaud, and K. Jin. 2015. “Credit Constraints and Growth in a Global Economy.” The American Economic Review 105 (9): 2838–2881. doi:10.1257/aer.20130549.
   Web of Science ®Google Scholar
• Dooley, M., J. Frankel, and D. J. Mathieson. 1987. “What Do Saving-Investment Correlations Tell Us?” IMF Staff Papers 34 (3): 503–530. doi:10.2307/3867094.
   Google Scholar
• Feenstra, R. C., R. Inklaar, and M. P. Timmer. 2015. “The Next Generation of the Penn World Table.” The American Economic Review 105 (10): 3150–3182. doi:10.1257/aer.20130954.
   Web of Science ®Google Scholar
• Feldstein, M. S., and C. Y. Horioka. 1980. “Domestic Saving and International Capital Flows.” The Economic Journal 90 (358): 314–329. doi:10.2307/2231790.
   Web of Science ®Google Scholar
• Glick, R., and K. Rogoff. 1995. “Global versus Country-Specific Productivity Shocks and the Current Account.” Journal of Monetary Economics 35 (1): 159–192. doi:10.1016/0304-3932(94)01181-9.
   Web of Science ®Google Scholar
• Grigoli, F., A. Herman, and K. Schmidt-Hebbel. 2018. “Saving in the World.” World Development 104: 257–270. doi:10.1016/j.worlddev.2017.11.022.
   Web of Science ®Google Scholar
• Horioka, C. Y., and A. Terada-Hagiwara, 2011. “The Determinants and Long-Term Projections of Saving Rates in Developing Asia” NBER Working Paper 17581, Cambridge: National Bureau of Economic Research.
   Google Scholar
• Irandoust, M. 2019. “Saving and Investment Causality: Implications for Financial Integration in Transition Countries of Eastern Europe.” International Economics and Economic Policy 16: 397–416. doi:10.1007/s10368-017-0390-6.
   Google Scholar
• Montiel Olea, J. L., and C. E. Pflueger. 2013. “A Robust Test for Weak Instruments.” Journal of Business and Economic Statistics 31: 358–369. doi:10.1080/00401706.2013.806694.
   Web of Science ®Google Scholar
• Neal, T. 2015. “Estimating Heterogeneous Coefficients in Panel Data Models with Endogenous Regressors and Common Factors.” Mimeo.
   Google Scholar
• Obstfeld, M., and K. Rogoff, 2000. “The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?” NBER Working Paper 7777, Cambridge: National Bureau of Economic Research.
   Google Scholar
• Pesaran, M. H. 2006. “Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure.” Econometrica 74: 967–1012. doi:10.1111/j.1468-0262.2006.00692.x.
   Web of Science ®Google Scholar
• Singh, T. 2016. “Rhetorics of Savings-Investment Correlations and the International Mobility of Capital: A Survey.” The Journal of International Trade & Economic Development 25: 639–690. doi:10.1080/09638199.2015.1118526.
   Web of Science ®Google Scholar
• Stock, J. H., and M. Yogo. 2005. “Testing for Weak Instruments in Linear IV Regression.” In Identification and Inference for Econometric Models: Essays in Honor of Thomas Rothenberg, edited by D. W. K. Andrews and J. H. Stock, 80–108. New York: Cambridge University Press.
   Google Scholar