Document Type : Case Study


1 Assistant Professor of Economics, Yazd University, Yazd, Iran

2 Ph.D student in Economics, Yazd University, Yazd, Iran

3 Faculty Member, Velayat University, Iranshahr, Iran


This paper determines the degree of capital mobility and saving- investment association by using the Feldstein- Horioka (1980) approach among Middle East and North African (MENA) countries during 1990-2011. According to the Feldstein- Horioka hypothesis, in a country with high degree of capital mobility there should be no relationship between domestic saving and domestic investment and inversely, in a country with low degree of capital mobility there is a high correlation between domestic saving and domestic investment. Using panel data and employing Random effect Model to estimate the model, the obtained results show that capital is highly mobile in these countries.


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