In this paper, we examine domestic saving-investment relationship for a panel data of 40 countries consisting both industrial and emerging economies for the 1960-2013 period. To this end, we employ the recent advanced panel data estimation procedures which consider potential heterogeneity and cross-sectional dependency, to estimate short-run and long-run coefficients. We find that the correlation between saving and investment is higher in the long run than in the short run consistent with inter-temporal budget constraint. Furthermore, in contrast to the findings of previous studies, our results suggest smaller saving retention coefficient and thus higher capital mobility for industrial countries relative to developing economies.
scite shows how a scientific paper has been cited by providing the context of the citation, a classification describing whether it supports, mentions, or contrasts the cited claim, and a label indicating in which section the citation was made.
The articles in Bibliomed are open access articles licensed under Creative Commons Attribution 4.0 International License (CC BY), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.
We use cookies and other tracking technologies to work properly, to analyze our website traffic, and to understand where our visitors are coming from. More InfoGot It!
