Feldstein-Horioka (F-H) puzzle and country-specific effects: evidence from some developing countries' panel data

Salahuddin, Mohammad and Wahid, Abu N. M. (2012) Feldstein-Horioka (F-H) puzzle and country-specific effects: evidence from some developing countries' panel data. Indian Economic Journal, 60 (3). pp. 138-147. ISSN 0019-4662

Abstract

This study attempts to see whether the Feldstein-Horioka (F-H) puzzle holds when countryspecific effects are taken into account in a panel of 20 developing countries. We employ four estimation procedures, pooled, between, within (fixed effect) and random effect (RE) models. The results indicate that the puzzle does not go away even when country-specific effects are accounted for. In order to check robustness of results, estimates are also obtained from two sub-samples which produce qualitatively similar results. Overall findings contrast the results documented in Corbin (2001) and suggest that another puzzle (low correlation between savings and investment in developing countries) still remains even when country-specific effects are accounted for.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: *The publication date shown by the article is October-December 2012 but it was actually published in 2014* 'The copyright of the articles, published in the Indian Economic Journal rests solely with the Indian Economic Journal.'
Faculty / Department / School: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 09 Oct 2014 07:10
Last Modified: 06 Feb 2017 01:25
Uncontrolled Keywords: Feldstein-Horioka puzzle; F-H puzzle; developing countries; country-specific effects
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910109 Savings and Investments
URI: http://eprints.usq.edu.au/id/eprint/26167

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