A panel cointegration approach to the investment-saving correlation

Tsung wu Ho*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

44 Citations (Scopus)


This paper augments the empirical literature concerning the Feldstein-Horioka puzzle using non-stationary panel data. Recently developed tests for panel cointegration and panel unit root tests are employed. We find substantial evidence to support the hypothesis of no cointegration in this panel, implying a high degree of international capital mobility. Our results suggest that tests for cointegration in panel data provides a better methodological focus than the magnitude of saving-retention coefficients.

Original languageEnglish
Pages (from-to)91-100
Number of pages10
JournalEmpirical Economics
Issue number1
Publication statusPublished - 2002 Feb
Externally publishedYes


  • International capital mobility
  • Panel cointegration
  • Saving-retention coefficient

ASJC Scopus subject areas

  • Statistics and Probability
  • Mathematics (miscellaneous)
  • Social Sciences (miscellaneous)
  • Economics and Econometrics


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