Artículos de revistas
Heterogeneity, saving-investment dynamics and capital mobility in Latin America
Fecha
2009Registro en:
EMPIRICAL ECONOMICS, v.36, n.3, p.611-619, 2009
0377-7332
10.1007/s00181-008-0215-0
Autor
ROCHA, Fabiana
Institución
Resumen
The purpose of this paper is to analyze the dynamics of national saving-investment relationship in order to determine the degree of capital mobility in 12 Latin American countries. The analytically relevant correlation is the short-term one, defined as that between changes in saving and investment. Of special interest is the speed at which variables return to the long run equilibrium relationship, which is interpreted as being negatively related to the degree of capital mobility. The long run correlation, in turn, captures the coefficient implied by the solvency constraint. We find that heterogeneity and cross-section dependence completely change the estimation of the long run coefficient. Besides we obtain a more precise short run coefficient estimate compared to the existent estimates in the literature. There is evidence of an intermediate degree of capital mobility, and the coefficients are extremely stable over time.