capital mobility in developing countries: evidence from panel data

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ID: 199720
2007
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Ranked #15 of 42 articles by views in trends in biochemical sciences

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Abstract
The purpose of this paper is to show that the use of panel data can shed some light on the Feldstein-Horioka puzzle. The use of panel data would bring in two advantages. First, it would avoid the bias towards low capital mobility brought by the use of time-averaged data. Second, it would make possible to take into account specific effects (heterogeneity) like a country's size. Pooling annual data for the period 1960-1996 for 29 developing countries, the estimated impact of saving on investment is considerably smaller and it is possible to conclude that there is some degree of capital mobility in developing countries. Therefore, the high estimated saving-investment correlation seems to be due more to the existence of specific individual country effects than to capital immobility. The coefficient stability through time remains a puzzle though.
O objetivo deste artigo é mostrar que dados em painel podem ajudar a entender o puzzle de Feldstein-Horioka. O uso de dados em painel traria duas vantagens. Primeiro, faria com que fosse evitado o viés em direção à baixa mobilidade de capitais resultante do uso da média dos dados. Segundo, tornaria possível levar em conta efeitos específicos (heterogeneidade), como o tamanho do país. Usando dados em painel para o período 1960-1996 para 29 países em desenvolvimento, o impacto estimado da poupança sobre o investimento é bem menor, sendo possível concluir que existe um grau intermediário de mobilidade de capitais. Assim, o alto valor estimado para a correlação poupança-investimento parece resultar mais da existência de efeitos específicos individuais do país do que de baixa mobilidade de capitais. A estabilidade dos coeficientes estimados ao longo do tempo permanece, contudo, um puzzle.
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rocha2007estudoscapital Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors ;Fabiana Rocha
Journal trends in biochemical sciences
Year 2007
DOI
10.1590/S0101-41612007000300004
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