01828cas a2200253 a 4500 AALejournalIMF000527 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451841732 1018-5941 BD-DhAAL BD-DhAAL Wacziarg, Romain. Developing Countries and the Feldstein-Horioka Puzzle / Romain Wacziarg, Athanasios Vamvakidis. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The previous literature points to a high correlation between domestic rates of investment and savings among OECD countries. Some take this as evidence of limited financial integration in the industrialized world. This paper presents new empirical results, based on an extended sample of countries. The correlation coefficient in a regression of the rate of domestic investment on the rate of domestic savings is statistically insignificant most of the time and generally smaller than 0.3 for any sample other than the OECD. This finding is robust with respect to alternative time periods, subsample and estimation methods. In particular, we control for measurement error, business cycle effects, and country-specific fixed effects. Mode of access: Internet Vamvakidis, Athanasios. IMF Working Papers; Working Paper ; No. 1998/002 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/002/001.1998.issue-002-en.xml IMF e-Library