This paper models the open economy macroeconomics of international capital rankest integration from an absorption-Fisherian perspective. Though eliminating indirect and direst foreign investment barriers widens current and capital account imbalances, such imbalances should not, of themselves, be...

This paper identifies foreign investment, broadly defined, as an additional source of income growth for open trading economies under conditions where physical capital is free to cross country borders. By extending the precepts of neoclassical theory, it shows how current account imbalances...