TY  - BOOK
AU  - Adedeji Olumuyiwa S.
AU  - Thornton John
TI  - Saving, investment and capital mobility in African countries
SN  - 09638024
AV  - HC800 JOU 
PY  - 2007///
CY  - Oxford
PB  - Oxford university Press
KW  - Capital mobility
KW  - Investment
KW  - Estimation
KW  - 1970-2000
KW  - Africa
N2  - Recently developed panel co-integration techniques are applied to data for six African countries to test the Feldstein–Horioka approach to measuring capital mobility. The results suggest three conclusions: savings and investment in panel data are non-stationary series and they are co-integrated; capital was relatively mobile in the African countries during 1970–2000, with estimated savings–retention ratios of 0.73 (FMOLS), 0.45 (DOLS), 0.51 (DOLS with heterogeneity) and 0.39 (DOLS with cross-sectional dependence effects); and there was a marked drop in the savings–retention ratio from 1970–85 to 1986–2000. The results could be interpreted as indicating that capital mobility in African countries has increased, reflecting the implementation of market-orientated reforms, including the privatisation and rationalisation of the public sector, and the partial liberalisation of their exchange rate regimes and financial systems
UR  - 10.1093/jae/ejl039
ER  -