The Role of Remittences in the Explanation of Feldstein-Horioka Paradox: Evidence from Transition Economies

摘要

We measure the level of capital mobility following Feldstein and Horioka (1980) who assume that measuring the extent to which national saving and investment rates are correlated indicate the degree of financial integration into the world economy. While they surprisingly found the high positive correlation between saving and investment in developed OECD economies, subsequent empirical studies on the sample of less developed economies found smaller saving-investment correlation. Concentrating on the determinants of investments in the transition economies that could explain now conventional, puzzling Feldstein-Horioka results for transition economies, we were the first who consider remittances as possible explanation. The results of panel analysis seem to support the hypothesis of capital mobility among the economies in transition for the period 1995-2007. Highly significant effect of remittances on investment supports our argument that a significant portion of received remittances is directed toward investment in transition economies.Sa?etakRazinu mobilnosti kapitala mjerimo slijede?i Feldsteinai Horioku (1980) koji ka?u da mjerenje razmjera do kojeg su dr?avne stope ?tednje i ulaganja korelirane, ukazuje na stupanj financijske integracije u svjetsku ekonomiju. I dok su neo?ekivano zaklju?ili da postoji visok stupanj pozitivne korelacije izme?u ?tednje i ulaganja u razvijenim OECD ekonomijama, kasnija empirijska istra?ivanja na uzorku manje razvijenih zemalja, pokazala su manju korelaciju ?tednje i ulaganja. Koncentriraju?i se na odrednice ulaganja u tranzicijska gospodarstva koje bi mogle objasniti sada konvencionalne, zbunjuju?e Feldstein-Horioka rezultate za tranzicijska gospodarstva, bili smo prvi koji su razmotrili nov?ane po?iljke kao mogu?e obja?njenje. Rezultati panelne analize idu u prilog hipotezi o mobilnosti kapitala u tranzicijskim gospodarstvima za period od 1995-2007. Vrlo zna?ajan u?inak nov?anih po?iljaka na ulaganja podr?ava na?u tvrdnju da je zna?ajan udio primljenih nov?anih po?iljaka usmjeren ka ulaganju u tranzicijska gospodarstva.