Capital Mobility in Emerging Europe


Taslaman C., KAYIKÇI F.

EMERGING MARKETS FINANCE AND TRADE, vol.49, pp.250-258, 2013 (Journal Indexed in SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 49
  • Publication Date: 2013
  • Doi Number: 10.2753/ree1540-496x4905s515
  • Title of Journal : EMERGING MARKETS FINANCE AND TRADE
  • Page Numbers: pp.250-258

Abstract

Panel cointegration methods are used to analyze the saving and investment relationships of the EU member countries; the degree of capital mobility is investigated by pooled mean group estimation. Results demonstrate that although saving and investment move together in the long run, there is also a moderate level of capital mobility in the short run, suggesting that the Feldstein-Horioka puzzle is not valid for these countries in the 1980-2012 period. Results differ in the subsamples of the European Union as the degree of capital mobility is higher in the eurozone countries and early members of the European Union.