TY - JOUR
T1 - The Feldstein-Horioka puzzle in Latin American and Caribbean countries
T2 - A panel cointegration analysis
AU - Murthy, N. R.Vasudeva
PY - 2009
Y1 - 2009
N2 - In this paper, the recently developed panel unit root and the Pedroni cointegration tests are applied to empirically examine the validity of the Feldstein-Horioka puzzle (F-H puzzle) for a heterogeneous panel of 14 Latin American and five Caribbean countries over the period, 1960-2002. The findings indicate that in these countries, the long-run solvency condition is maintained. Finally, employing the Pedroni panel group FM-OLS estimator (2000, 2001), it is found that the statistically significant estimated savings-retention coefficient for the panel is relatively small indicating that the F-H Puzzle is not valid and thus implying the prevalence of a moderate degree of capital mobility.
AB - In this paper, the recently developed panel unit root and the Pedroni cointegration tests are applied to empirically examine the validity of the Feldstein-Horioka puzzle (F-H puzzle) for a heterogeneous panel of 14 Latin American and five Caribbean countries over the period, 1960-2002. The findings indicate that in these countries, the long-run solvency condition is maintained. Finally, employing the Pedroni panel group FM-OLS estimator (2000, 2001), it is found that the statistically significant estimated savings-retention coefficient for the panel is relatively small indicating that the F-H Puzzle is not valid and thus implying the prevalence of a moderate degree of capital mobility.
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U2 - 10.1007/s12197-008-9051-5
DO - 10.1007/s12197-008-9051-5
M3 - Article
AN - SCOPUS:65249087946
VL - 33
SP - 176
EP - 188
JO - Journal of Economics and Finance
JF - Journal of Economics and Finance
SN - 1055-0925
IS - 2
ER -