Working Paper

Saving-investment associations and capital mobility on the evidence from Japanese regional data

Abstract: We will examine the size of the Feldstein and Horioka (1980) \"saving-retention coefficient\" in a setting of near perfect capital mobility, Japanese regions. We first find that on total regional saving and investment rate data, inclusive of regional government saving and investment, the estimate of the coefficient is negative. This negative relationship in the total rates across Japanese regions appears to arise from the strong negative association in the government saving and investment rates.

Keywords: Capital movements; Japan; Saving and investment;

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: International Finance Discussion Papers

Publication Date: 1995

Number: 496