Economic growth as regardless of productivity increase has to took placed with investments, the investments simply can be met by savings. At this point, it is required that identification the ratio of domestic savings to meet domestic investments or domestic investments of dependence on foreign savings. In this respect the study, in the frame Feldstein-Horioka Hypothesis, it is aimed that on 28 OECD member countries which according to the saving-investment balance is grouped, the relationship between domestic savings and domestic investments investigation by using a new generation of panel data analysis methodology which cross-section dependence taking into account and data for the period 1980-2013. As a result of the study, it has been determined that the ratios of domestic savings to meet domestic investments namely the degree of capital mobility on defined country groups, according to the saving-investment balance of the country significantly is varied. At the same time, in the study it has been concluded that Feldstein- Horioka Hypothesis is accepted in countries with saving surplus, conversely Feldstein- Horioka Paradox is relatively continued in countries with saving deficient.

Author Name: Ömer Yalç?nkaya, ?brahim Hüseyni

URL: View PDF

Keywords: Domestic Saving-Investment, Feldstein-Horioka Hypothesis, A New Generation of Panel Data Analysis

ISSN: 1302-504X

EISSN: 2147-7973

EOI/DOI:

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