International Journal of Management, Accounting and Economics Vol. 2, No. 6, June, 2015 ISSN 2383-2126 (Online) © IJMAE, All Rights Reserved www.ijmae.com 517 Investigating Capital Mobility and Saving- Investment Relationship: Case Study of MENA Countries Mansoor Mahini Zadeh Assistant Professor of Economics, Yazd University, Yazd, Iran Elahe Mahmoodi 1 Ph.D. Student in Economics, Yazd University, Yazd, Iran Majid Mahmoodi Faculty Member, Velayat University, Iranshahr, Iran Abstract This paper determines the degree of capital mobility and saving- investment association by using the Feldstein- Horioka (1980) approach among Middle East and North African (MENA) countries during 1990-2011. According to the Feldstein- Horioka hypothesis, in a country with high degree of capital mobility there should be no relationship between domestic saving and domestic investment and inversely, in a country with low degree of capital mobility there is a high correlation between domestic saving and domestic investment. Using panel data and employing Random effect Model to estimate the model, the obtained results show that capital is highly mobile in these countries. Keywords: Capital mobility, Feldestein and Horioka approach, MENA region, Panel Data Cite this article: Mahini Zadeh, M., Mahmoodi, E., & Mahmoodi, M. (2015). Investigating Capital Mobility and Saving- Investment Relationship: Case Study of MENA Countries. International Journal of Management, Accounting and Economics, 2(6), 517-526. Introduction Rapid economic liberalization in emerging markets in the late 1980s and the early 1990s through technological progresses in transportation systems and communication, 1 Corresponding author’s email: mahmoodi.elahe@gmail.com