| Summary: | 碩士 === 國立中山大學 === 經濟學研究所 === 107 === The study is to examine the differential impact of foreign capital inflows on domestic saving by using a panel dataset of 46 developing countries over the period of 1976-2015. The conventional estimation techniques ignore cross section dependence, parameter heterogeneous and endogenous properties and thus yield biased and inconsistent estimates. This thesis have improved the problem of estimation techniques using Neal (2015) that extend the Common Correlated Effects (CCE) approach of Pesaran (2006) and Chudik and Pesaran (2015) by replacing OLS with 2SLS/GMM, and using lags to form the instrument set. The implication of current study is with two things: First, the research method that Chudik and Pesaran (2015) used was reckon without the endogenous, which caused their research ignore the effect that remittance could bring to domestic saving. Second, domestic saving is crowded out significantly by remittance and foreign aid, which is contradict with the research of supplemening domestic saving. Both researches are identified that
remittance is mainly used on daily consumption. The usage of remittance and official development assistance should be more clarify for government to make policy.
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