Does Economic Integration Stimulate Capital Mobility? An Analysis of Four Regional Economic Communities in Africa

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aut.relation.journalJournal of International Financial Markets, Institutions and Moneyen_NZ
aut.researcherKumar, Saten
dc.contributor.authorKumar, Sen_NZ
dc.contributor.authorSen, Ren_NZ
dc.contributor.authorSrivastava, Sen_NZ
dc.date.accessioned2017-10-25T01:00:53Z
dc.date.available2017-10-25T01:00:53Z
dc.date.copyright2013-11-14en_NZ
dc.date.issued2013-11-14en_NZ
dc.description.abstractIt is well known that high levels of regional integration enable portfolio risk diversification and capital mobility. While there have been a number of empirical attempts to verify the presence of capital mobility using the Feldstein–Horioka (FH) approach, none of them to the best of our knowledge have explicitly examined capital mobility changes across regional economic groupings in Africa, analyzing sub-samples to compare effects of pre-versus post integration. Filling this gap in the literature, this paper analyzes how some major regional economic integration initiatives, such as SACU (South African Customs Union), UEMOA (West African Economic and Monetary Union), COMESA (Common Market for Eastern and Southern Africa) and ECOWAS (Economic Community of West African States)) have influenced capital mobility in their member countries. To estimate the investment and savings relationship, we use Pedroni's (2004) fully modified ordinary least squares (FMOLS) panel cointegration method, applying to a sample of 25 African countries for which annual data is available from 1960 to 2009. To assess robustness of our results, we also employ the fixed effects, random effects and Mark and Sul's (2003) dynamic OLS (DOLS) methods. Our findings suggest that international capital mobility has only slightly increased in the African countries due to these agreements.
dc.identifier.citationJournal of International Financial Markets, Institutions and Money, 29, 33-50.
dc.identifier.doi10.1016/j.intfin.2013.11.001en_NZ
dc.identifier.urihttps://hdl.handle.net/10292/10911
dc.publisherElsevier
dc.relation.urihttp://www.sciencedirect.com/science/article/pii/S1042443113000875?via%3Dihub
dc.rightsCopyright © 2014 Elsevier Ltd. All rights reserved. This is the author’s version of a work that was accepted for publication in (see Citation). Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. The definitive version was published in (see Citation). The original publication is available at (see Publisher's Version).
dc.rights.accessrightsOpenAccessen_NZ
dc.subjectRegional economic integration; Feldstein–Horioka puzzle; Cointegration; International capital mobility
dc.titleDoes Economic Integration Stimulate Capital Mobility? An Analysis of Four Regional Economic Communities in Africaen_NZ
dc.typeJournal Article
pubs.elements-id158101
pubs.organisational-data/AUT
pubs.organisational-data/AUT/Business, Economics & Law
pubs.organisational-data/AUT/Business, Economics & Law/Economics
pubs.organisational-data/AUT/Business, Economics & Law/Economics/Economics PBRF 2012
pubs.organisational-data/AUT/Business, Economics & Law/NZWRI - NZ Work Research Institute
pubs.organisational-data/AUT/Faculty of Business, Economics and Law
pubs.organisational-data/AUT/Faculty of Business, Economics and Law/NZ Work Research Institute
pubs.organisational-data/AUT/Faculty of Business, Economics and Law/School of Economics
pubs.organisational-data/AUT/PBRF
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/Faculty Review Team PBRF 2018
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/School of Economics PBRF 2018
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