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Relationship between Investment and Saving: New Generation Panel Cointegration Analysis for OECD Countries
The purpose of this study is to examine the relationship between domestic investment and savings by the help of the new generation panel data analysis methods. This study is up-to-date in terms of its method and subject and signifies a policy proposal for countries such as Turkey, dealing with the low levels of domestic savings problem. In this respect, it thought that will provide a contribution to the related literature. In this study relationship between investment and saving was analyzed for 20 Organisation for Economic Co-operation and Development countries within the framework of Feldstein-Horioka Paradox by using 1980-2012 period data via under cross-section dependence panel cointegration method with multiple structural breaks. As a result of the analysis, it was seen that Feldstein-Horioka Paradox is not valid in these countries.