THE DETERMINANTS OF U.S. CAPITAL IMPORTS
In: The annals of the American Academy of Political and Social Science, Band 516, S. 36-49
ISSN: 0002-7162
SINCE 1982 THE UNITED STATES HAS BEEN A LARGE NET IMPORTER OF CAPITAL. THIS CONDITION APPEARS TO BE PRIMARILY ATTRIBUTABLE TO THE LARGE, SUSTAINED FEDERAL BUDGET DEFICIT. NET U.S. FOREIGN INVESTMENT IN THE 1980'S APPEARED TO BE MORE SENSITIVE TO CHANGES IN DOMESTIC DEMAND, SUGGESTING AN INCREASING SUBSTITUTABILITY OF DOMESTIC AND FOREIGN GOODS IN THE U.S. MARKET. CHANGES IN FOREIGN ECONOMIC CONDITIONS AND POLICIES IN THE 1980'S DID NOT APPEAR TO HAVE A SUBSTANTIAL EFFECT ON THE BALANCE OF CAPITAL FLOWS. THUS, THE LARGE NET U.S. IMPORTATION OF CAPITAL IS NOT A POLICY PROBLEM BUT IS THE RESULT OF A POLICY PROBLEM--SPECIFICALLY, THE DECLINE IN PRIVATE SAVINGS AND THE CONTINUOUSLY LARGE FEDERAL BUDGET DEFICIT.