Feldstein-Horioka (F-H) puzzle and country-specific effects: evidence from some developing countries' panel data

Article

Salahuddin, Mohammad and Wahid, Abu N. M.. 2012. "Feldstein-Horioka (F-H) puzzle and country-specific effects: evidence from some developing countries' panel data." Indian Economic Journal. 60 (3), pp. 138-147.
Article Title

Feldstein-Horioka (F-H) puzzle and country-specific effects: evidence from some developing countries' panel data

ERA Journal ID18213
Article CategoryArticle
AuthorsSalahuddin, Mohammad (Author) and Wahid, Abu N. M. (Author)
Journal TitleIndian Economic Journal
Journal Citation60 (3), pp. 138-147
Number of Pages10
Year2012
Place of PublicationNew Delhi, India
ISSN0019-4662
Web Address (URL)http://www.indianeconomicjournal.org/
Abstract

This study attempts to see whether the Feldstein-Horioka (F-H) puzzle holds when countryspecific effects are taken into account in a panel of 20 developing countries. We employ four estimation procedures, pooled, between, within (fixed effect) and random effect (RE) models. The results indicate that the puzzle does not go away even when country-specific effects are accounted for. In order to check robustness of results, estimates are also obtained from two sub-samples which produce qualitatively similar results. Overall findings contrast the results documented in Corbin (2001) and suggest that another puzzle (low correlation between savings and investment in developing countries) still remains even when country-specific effects are accounted for.

KeywordsFeldstein-Horioka puzzle; F-H puzzle; developing countries; country-specific effects
ANZSRC Field of Research 2020440499. Development studies not elsewhere classified
Public Notes

*The publication date shown by the article is October-December 2012 but it was actually published in 2014*
'The copyright of the articles, published in the Indian Economic Journal rests solely with the Indian Economic Journal.'

Byline AffiliationsSchool of Accounting, Economics and Finance
Tennessee State University, United States
Institution of OriginUniversity of Southern Queensland
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