A note on capital mobility in Greece

Pelagidis and Mastroyiannis [Pelagidis, T., & Mastroyiannis, T. (2003). The saving-investment correlation in Greece, 1960-1997: Implications for capital mobility. Journal of Policy Modeling] using the cointegration methodology proposed by Jansen and Schulze [Jansen, W.J., & Schulze, G.G. (1993). Theory-based measurement for the saving-investment correlation with an application to Norway. Discussion paper 205. Universitat Kostanz] conclude that the hypothesis of perfect capital mobility cannot be confirmed in the case of Greece. This note argue that this result is not consistent with the methodology of Johansen which suggests that the Feldestein-Horioka hypothesis should be accepted contrary to what the paper of Pelagidis and Mastroyiannis claims.