Estimates of the Macroeconomic Impact of Foreign Investment in Asutralia
Article
Article Title | Estimates of the Macroeconomic Impact of Foreign Investment in Asutralia |
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ERA Journal ID | 18216 |
Article Category | Article |
Authors | Layton, Allan P. and Makin, Tony |
Journal Title | International Economic Journal |
Journal Citation | 7 (4), pp. 35-42 |
Number of Pages | 8 |
Year | 1993 |
Publisher | Taylor & Francis |
Place of Publication | United Kingdom |
ISSN | 1016-8737 |
1743-517X | |
Digital Object Identifier (DOI) | https://doi.org/10.1080/10168739300000011 |
Web Address (URL) | https://www.tandfonline.com/doi/abs/10.1080/10168739300000011 |
Abstract | Foreign investment supplements domestic saving, allowing an economy to accumulate real capital more quickly. Therefore, the question of the desirability of a current account deficit, which necessarily matches a net capital inflow, essentially depends on whether the extra real output made possible by the foreign funds exceeds their real servicing cost. This paper provides econometric estimates which suggest that in the case of Australia, a country which experienced comparatively large external imbalances over the 1980's, the use of foreign capital has raised national income by more than would have occurred in absence of the foreign inflow. [F 47] |
Keywords | Macroeconomic ; Foreign Investment |
Public Notes | Files associated with this item cannot be displayed due to copyright restrictions. |
Byline Affiliations | Queensland University of Technology |
https://research.usq.edu.au/item/yy4q8/estimates-of-the-macroeconomic-impact-of-foreign-investment-in-asutralia
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