2005
DOI: 10.1080/00036840500278103
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The saving and investment nexus for China: evidence from cointegration tests

Abstract: The saving and investment nexus as postulated by Feldstein and Horioka (FH) (1980) is revisited. The saving investment correlation for China is estimated over the periods 1952-1998 and 1952-1994, the latter culminating in a period of fixed exchange rate regime. Amongst the key results, it is found that saving and investment are correlated for China for both the period of the fixed exchange rate and the entire sample period. With high saving-investment correlation, the results suggest that the Chinese economy i… Show more

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Cited by 2,647 publications
(2,207 citation statements)
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“…As been illustrated in Table II, the order of lags on the first different obtained from unrestricted VAR model using AIC indicates both model have the same lag order, which is lag 2. The results reported in Table IV indicate that the null hypothesis of cointegration is rejected at the 1% of significant level using ADRL bound test of Narayan [23] and the F-statistic compared against the Narayan critical table with intercept and no trend. The calculated F-statistics are higher than the upper bound critical value at the 1% level.…”
Section: Empirical Findingsmentioning
confidence: 99%
“…As been illustrated in Table II, the order of lags on the first different obtained from unrestricted VAR model using AIC indicates both model have the same lag order, which is lag 2. The results reported in Table IV indicate that the null hypothesis of cointegration is rejected at the 1% of significant level using ADRL bound test of Narayan [23] and the F-statistic compared against the Narayan critical table with intercept and no trend. The calculated F-statistics are higher than the upper bound critical value at the 1% level.…”
Section: Empirical Findingsmentioning
confidence: 99%
“…The UECM integrates the short run dynamics with the long run equilibrium without losing any information for the long run. The empirical formulation of the ARDL bounds testing approach to cointegration is given below: [59] rather than Narayan [60].…”
Section: The Ardl Bounds Testing Approachmentioning
confidence: 99%
“…The null hypothesis is that there is no cointegration among variables. The critical values are given in Pesaran et al (2001) and Narayan (2005). *** indicates the rejection of the null hypothesis at the 1% significance.…”
mentioning
confidence: 99%