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International Financial Market Integration and The Feldstein–Horioka Puzzle: Evidence from Emerging Market Economies

Naib Alakbarov & Yılmaz Bayar

Romanian Journal of Economic Forecasting2021article
ABDC C
Weight
0.45

What the paper says

Financial liberalization and globalization gained speed as of late 1970s with collapse of Bretton Woods system and the global integration raised considerably, especially during the past four decades. Foreign capital flows in terms of foreign direct investments and portfolio investments increased, especially in the emerging markets experiencing high growth rates, with relatively cheap, but qualified labor. This study tests the validity of the Feldstein-Horioka puzzle in 21 emerging markets during the 1994-2016 period with the panel cointegration test of Westerlund’s (2008) Durbin-Hausman panel cointegration test and the panel causality test of Dumitrescu and Hurlin (2012). The findings revealed that domestic investments were mostly financed through external capital inflows; therefore, the findings contradicted the results of Feldstein-Horioka (1980) in the sample of emerging market economies.

4 citations

Cite this paper

@article{naib2021,
  title        = {{International Financial Market Integration and The Feldstein–Horioka Puzzle: Evidence from Emerging Market Economies}},
  author       = {Naib Alakbarov & Yılmaz Bayar},
  journal      = {Romanian Journal of Economic Forecasting},
  year         = {2021},
}

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International Financial Market Integration and The Feldstein–Horioka Puzzle: Evidence from Emerging Market Economies

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Evidence weight

0.45

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.26 × 0.4 = 0.11
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.