Capital mobility in Sweden: A time-varying parameter approach

Abdulnasser Hatemi-J, R. Scott Hacker

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)


This article investigates the degree of capital mobility in Sweden during 1993 to 2004 using quarterly data. A time varying parameter model is estimated by the Kalman filter, and it shows that the relationship between investment as share in gross domestic product (GDP) and saving as share in GDP is much less than one (within the interval of 0.25-0.35), indicating substantial capital mobility. However, since the coefficient in each period is statistically different from zero, capital is still not perfectly mobile. Nevertheless, capital mobility seems to have increased until 1995 when Sweden became a member of EU and after membership there seems to be no significant increase in capital mobility.

Original languageEnglish
Pages (from-to)1115-1118
Number of pages4
JournalApplied Economics Letters
Issue number15
Publication statusPublished - Dec 2007
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


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