Journal of World Economic Research
Volume 4, Issue 5-1, September 2015, Pages: 1-7
Received: Jul. 1, 2015;
Accepted: Jul. 2, 2015;
Published: Aug. 13, 2015
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Anisul M. Islam, Economics, College of Business, University of Houston-Downtown, Houston, USA
Muhammad Mustafa, Economics, South Carolina State University, Orangeburg, USA
Matiur Rahman, Finance, McNeese State University, Lake Charles, USA
Using Saving-Investment relationship as indirect evidence of global capital mobility, this paper empirically examines the capital mobility hypothesis using new data for forty developing countries. The paper utilizes annual data over 1960-2013 period, the longest time period of 54 years for as many developing countries ever used with a panel sample size of 2,160 (40 x 54) annual observations, the longest time periods and largest cross-sections ever used previously. For this study, panel regression analysis was used to estimate the relationship and then use the relationship to test some hypothesis regarding the capital mobility. The study finds evidence of partial capital mobility among the sample developing countries, and the degree of capital mobility was found to be stronger than that originally found by Feldstein and Horioka
Anisul M. Islam,
Global Capital Mobility: Some New Empirical Evidence, Journal of World Economic Research. Special Issue: The Globalization and Economic Structure Changes.
Vol. 4, No. 5-1,
2015, pp. 1-7.
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