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Open Economies Review

, Volume 2, Issue 2, pp 137–163 | Cite as

Saving, investment, and capital mobility among OECD countries

  • Lori L. Leachman
Article

Abstract

Historically investigations of the international mobility of capital have studied rates of return on similar assets denominated in different currencies. Recently, however, efforts directed at ascertaining the degree of international capital mobility have examined the relationship between domestic saving and investment rates. The first approach assesses the mobility of groups of financial assets which represent the existing capital stock while the latter actually scrutinizes the mobility of new physical capital.

This paper employs the second approach in a times series study of capital mobility among OECD countries. Implementation of four different tests of the saving-investment relationship suggest that physical capital is more mobile than previous studies have indicated.

Key Words

capital mobility market integration saving investment 

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Copyright information

© Kluwer Academic Publishers 1991

Authors and Affiliations

  • Lori L. Leachman
    • 1
  1. 1.Winthrop CollegeUSA

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