TY - JOUR
T1 - The saving and investment nexus for China
T2 - evidence from cointegration tests
AU - Narayan, Paresh Kumar
N1 - Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2005/9/20
Y1 - 2005/9/20
N2 - The saving and investment nexus as postulated by Feldstein and Horioka (FH) (1980) is revisited. The saving investment correlation for China is estimated over the periods 1952-1998 and 1952-1994, the latter culminating in a period of fixed exchange rate regime. Amongst the key results, it is found that saving and investment are correlated for China for both the period of the fixed exchange rate and the entire sample period. With high saving-investment correlation, the results suggest that the Chinese economy is in conformity with the FH hypothesis. This is a valid outcome, for in China capital mobility was fairly restricted over the 1952-1994 period as indicated by the relatively low foreign direct investment.
AB - The saving and investment nexus as postulated by Feldstein and Horioka (FH) (1980) is revisited. The saving investment correlation for China is estimated over the periods 1952-1998 and 1952-1994, the latter culminating in a period of fixed exchange rate regime. Amongst the key results, it is found that saving and investment are correlated for China for both the period of the fixed exchange rate and the entire sample period. With high saving-investment correlation, the results suggest that the Chinese economy is in conformity with the FH hypothesis. This is a valid outcome, for in China capital mobility was fairly restricted over the 1952-1994 period as indicated by the relatively low foreign direct investment.
UR - http://www.scopus.com/inward/record.url?scp=21544453332&partnerID=8YFLogxK
U2 - 10.1080/00036840500278103
DO - 10.1080/00036840500278103
M3 - Article
AN - SCOPUS:21544453332
SN - 0003-6846
VL - 37
SP - 1979
EP - 1990
JO - Applied Economics
JF - Applied Economics
IS - 17
ER -
