Year: 2026 | Month: September | Volume: 13 | Issue: 9 | Pages: 135-143
DOI: https://doi.org/10.52403/ijrr.20260915
International Capital Mobility: A Study of BRICS Countries
Dr. Ruby Singh1, Dr. Sumi Goswami2
1Assistant Professor, Department of Economics, Udai Pratap (Autonomous) College, Varanasi, India,
2Guest Faculty, Department of Economics, Dayalbagh Educational Institute (Deemed to be University), Agra, India,
Corresponding Author: Dr. Ruby Singh
ABSTRACT
This study re-examines the degree of international capital mobility in the BRICS countries (Brazil, Russia, India, China, and South Africa) during the period 1994–2018 using a panel data framework. The analysis is based on the Feldstein–Horioka (1980) hypothesis, which posits that the correlation between domestic saving and domestic investment serves as an indicator of the extent of international capital mobility. A high saving–investment correlation suggests low capital mobility, whereas a weak correlation indicates greater integration with international capital markets. Utilizing Dynamic Ordinary Least Squares (DOLS) for panel we estimate the saving-retention coefficient (). The long-run saving-retention coefficient is estimated at rejecting both complete capital autarky () and perfect capital mobility (). The study concludes low capital mobility in BRICS countries indicating macroeconomic policy constraint, such as preservation of monetary sovereignty, exchange rate stabilization.
Keywords: International Capital Mobility, Feldstein–Horioka Hypothesis, BRICS, Panel Data Analysis, Domestic Saving, Domestic Investment, Financial Integration, Capital Account Liberalization.
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