Saving-investment correlations and capital mobility in OECD countries: an error correction analysis

Abstract

This article studies the time series properties of saving and investment rates for 23 OECD countries using error correction model (ECM) developed by Jansen and Schulze (1996) and Jansen (1996). Applying the ECM to the OECD countries, we find that Denmark, France, Greece, Italy, Japan, Spain, Sweden, Turkey and the United Kingdom indicate low capital mobility.