Atlantic Economic Journal

, Volume 27, Issue 1, pp 53–58 | Cite as

A cointegration approach to capital mobility: Evidence for Belgium

  • Joaquin V. Pi-Anguita
Articles

Abstract

This paper provides a method for measuring capital mobility through the analysis of causality direction between the exchange rate and the interest rate. Empirical evidence is provided for Belgium. Cointegration and Granger causality tests show that the direction of causality between both variables reverses in 1979 when an increase in the degree of European financial integration took place.

Keywords

Exchange Rate Interest Rate Empirical Evidence International Economic Public Finance 
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Copyright information

© International Atlantic Economic Society 1999

Authors and Affiliations

  • Joaquin V. Pi-Anguita
    • 1
  1. 1.Universidad Complutense de MadridSpain

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