Cj. Allitt et Ia. Moosa, CONSUMPTION PATTERNS AS A MEASURE OF CAPITAL MOBILITY - EVIDENCE FROMSOME APEC COUNTRIES, Applied economics, 30(7), 1998, pp. 885-891
Consumption patterns are used to measure capital mobility within the A
PEC region, both on a bilateral and multilateral basis. Two models are
estimated by IV, SUR and OLS using quarterly data for four countries:
the US, Japan, Canada and Australia. The results show that the hypoth
esis of perfect capital mobility is rejected, and some results even in
dicate autarky. It is argued, however, that the hypothesis of perfect
capital mobility is unreasonable and that the consumption criterion is
inappropriate because it assumes real interest equalization.