Assessing international capital mobility in East Asian economies: a panel error-correction approach
This study assesses financial integration and the degree of international capital mobility in the East Asian region by analyzing the dynamics of national saving-investment relationships. Following the work of Pelgrin & Schich (2004), we interpret the close relationship between national saving an...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Routledge
2006
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| Online Access: | http://psasir.upm.edu.my/id/eprint/18124/1/18124.pdf |
| _version_ | 1825946135675535360 |
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| author | Eng, Yoke Kee Habibullah, Muzafar Shah |
| author_facet | Eng, Yoke Kee Habibullah, Muzafar Shah |
| author_sort | Eng, Yoke Kee |
| collection | UPM |
| description | This study assesses financial integration and the degree of international capital mobility in the East Asian region by analyzing the dynamics of national saving-investment relationships. Following the work of Pelgrin & Schich (2004), we interpret the close relationship between national saving and investment in the long run reflecting a solvency constraint and focus on the short term saving investment analysis relationship to assess the degree of capital mobility. Applying the panel error -correction technique proposed by Pesaran et al. (1999), our empirical results suggest that there exists a long-run relationship between saving and investment and that the short-run is driven by the extent of the gap between current and long-run equilibrium values. The low estimated values of the short-run coefficient of the changes in the saving rate signal some degree of capital mobility. |
| first_indexed | 2024-03-06T07:42:20Z |
| format | Article |
| id | upm.eprints-18124 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T07:42:20Z |
| publishDate | 2006 |
| publisher | Routledge |
| record_format | dspace |
| spelling | upm.eprints-181242017-05-03T10:00:35Z http://psasir.upm.edu.my/id/eprint/18124/ Assessing international capital mobility in East Asian economies: a panel error-correction approach Eng, Yoke Kee Habibullah, Muzafar Shah This study assesses financial integration and the degree of international capital mobility in the East Asian region by analyzing the dynamics of national saving-investment relationships. Following the work of Pelgrin & Schich (2004), we interpret the close relationship between national saving and investment in the long run reflecting a solvency constraint and focus on the short term saving investment analysis relationship to assess the degree of capital mobility. Applying the panel error -correction technique proposed by Pesaran et al. (1999), our empirical results suggest that there exists a long-run relationship between saving and investment and that the short-run is driven by the extent of the gap between current and long-run equilibrium values. The low estimated values of the short-run coefficient of the changes in the saving rate signal some degree of capital mobility. Routledge 2006 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/18124/1/18124.pdf Eng, Yoke Kee and Habibullah, Muzafar Shah (2006) Assessing international capital mobility in East Asian economies: a panel error-correction approach. Journal of the Asia Pacific Economy, 11 (4). pp. 411-423. ISSN 1354-7860; ESSN: 1469-9648 http://www.tandfonline.com/doi/abs/10.1080/13547860600923676 10.1080/13547860600923676 |
| spellingShingle | Eng, Yoke Kee Habibullah, Muzafar Shah Assessing international capital mobility in East Asian economies: a panel error-correction approach |
| title | Assessing international capital mobility in East Asian economies: a panel error-correction approach |
| title_full | Assessing international capital mobility in East Asian economies: a panel error-correction approach |
| title_fullStr | Assessing international capital mobility in East Asian economies: a panel error-correction approach |
| title_full_unstemmed | Assessing international capital mobility in East Asian economies: a panel error-correction approach |
| title_short | Assessing international capital mobility in East Asian economies: a panel error-correction approach |
| title_sort | assessing international capital mobility in east asian economies a panel error correction approach |
| url | http://psasir.upm.edu.my/id/eprint/18124/1/18124.pdf |
| work_keys_str_mv | AT engyokekee assessinginternationalcapitalmobilityineastasianeconomiesapanelerrorcorrectionapproach AT habibullahmuzafarshah assessinginternationalcapitalmobilityineastasianeconomiesapanelerrorcorrectionapproach |