IDEAS home Printed from https://ideas.repec.org/a/sae/anname/v516y1991i1p36-49.html
   My bibliography  Save this article

The Determinants of U.S. Capital Imports

Author

Listed:
  • WILLIAM A. NISKANEN

Abstract

Since 1982 the United States has been a large net importer of capital. This condition, consistent with the standard explanation, appears to be primarily attributable to the large sustained federal budget deficit. In addition, net U.S. foreign investment in the 1980s appears 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 1980s do not appear to have had a substantial effect on the balance of capital flows. The article concludes that 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 saving and the large continuous federal budget deficit.

Suggested Citation

  • William A. Niskanen, 1991. "The Determinants of U.S. Capital Imports," The ANNALS of the American Academy of Political and Social Science, , vol. 516(1), pages 36-49, July.
    • Handle: RePEc:sae:anname:v:516:y:1991:i:1:p:36-49
    DOI: 10.1177/0002716291516001004
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0002716291516001004
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0002716291516001004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bovenberg, A.L., 1989. "The effects of capital income taxation on international competitiveness and trade flows," Other publications TiSEM e64b6c96-399c-460f-9eff-7, Tilburg University, School of Economics and Management.
    2. William A. Niskanen, 1988. "The Uneasy Relation between the Budget and Trade Deficits," Cato Journal, Cato Journal, Cato Institute, vol. 8(2), pages 507-532, Fall.
    3. Bovenberg, A Lans, 1989. "The Effects of Capital Income Taxation on International Competitiveness and Trade Flows," American Economic Review, American Economic Association, vol. 79(5), pages 1045-1064, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Morgenroth, Edgar & FitzGerald, John & FitzGerald, John, 2006. "Summary and Conclusions," Book Chapters, in: Morgenroth, Edgar (ed.),Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013, chapter 24, pages 317-333, Economic and Social Research Institute (ESRI).
      • Baker, Terence J. & FitzGerald, John & Honohan, Patrick & FitzGerald, John & Honohan, Patrick, 1996. "Summary and Conclusions," Book Chapters, in: Baker, Terence J. (ed.),Economic Implications for Ireland of EMU, chapter 12, pages 339-352, Economic and Social Research Institute (ESRI).
    2. Enrique G. Mendoza & Linda L. Tesar, 1995. "Supply-Side Economics in a Global Economy," NBER Working Papers 5086, National Bureau of Economic Research, Inc.
    3. Jeffrey A. Frankel & Andrew K. Rose, 1994. "A Survey of Empirical Research on Nominal Exchange Rates," NBER Working Papers 4865, National Bureau of Economic Research, Inc.
    4. Huizinga, Harry, 1995. "The optimal taxation of savings and investment in an open economy," Economics Letters, Elsevier, vol. 47(1), pages 59-62, January.
    5. Meijdam, Lex & Verhoeven, Marijn, 1998. "Comparative Dynamics in Perfect-Foresight Models," Computational Economics, Springer;Society for Computational Economics, vol. 12(2), pages 115-124, October.
    6. Osang, Thomas & Pereira, Alfredo, 1997. "Foreign growth and domestic performance in a small open economy," Journal of International Economics, Elsevier, vol. 43(3-4), pages 499-512, November.
    7. Lawrence H. Goulder, 1990. "Implications of Introducing US Withholding Taxes on Foreigners' Interest Income," NBER Chapters, in: Tax Policy and the Economy: Volume 4, pages 103-142, National Bureau of Economic Research, Inc.
    8. Mr. Jacob A. Frenkel & Mr. Steven A. Symansky & Assaf Razin, 1991. "International Vat Harmonization: Economic Effects," IMF Working Papers 1991/022, International Monetary Fund.
    9. Jeffrey A. Frankel, 1990. "The Making of Exchange Rate Policy in the 1980s," NBER Working Papers 3539, National Bureau of Economic Research, Inc.
    10. Tate, Robert & Finlayson, Greg & MacWilliam, Leonard & Wiley, Miriam M. & Morgenroth, Edgar & FitzGerald, John, 2006. "Health," Book Chapters, in: Morgenroth, Edgar (ed.),Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013, Economic and Social Research Institute (ESRI).
    11. Harald Uhlig, 1998. "Capital Income Taxation and the Sustainability of Permanent Primary Deficits," Palgrave Macmillan Books, in: Steven Brakman & Hans Ees & Simon K. Kuipers (ed.), Market Behaviour and Macroeconomic Modelling, chapter 12, pages 309-337, Palgrave Macmillan.
    12. O'Connell, Philip J. & Russell, Helen & FitzGerald, John, 2006. "Human Resources," Book Chapters, in: Morgenroth, Edgar (ed.),Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013, Economic and Social Research Institute (ESRI).
    13. Casper van Ewijk & Erik Canton & Paul Tang, 2004. "Ageing and international capital flows," CPB Document 43.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Lans Bovenberg, A., 1993. "Investment-promoting policies in open economies : The importance of intergenerational and international distributional effects," Journal of Public Economics, Elsevier, vol. 51(1), pages 3-54, May.
    15. Keuschnigg, Christian, 1991. "How to compute perfect foresight equilibria," Discussion Papers, Series II 150, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".
    16. Philippe Thalmann & Lawrence Goulder & François Delorme, 1996. "Assessing the international spillover effects of capital income taxation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(4), pages 449-478, October.
    17. Bovenberg, A.L., 1994. "Investment-promoting policies in open economies : The importance of intergenerational and international distributional effects," Other publications TiSEM be140a39-7a76-4f99-8a61-2, Tilburg University, School of Economics and Management.
    18. Casper van Ewijk & Erik Canton & Paul Tang, 2004. "Ageing and international capital flows," CPB Document 43, CPB Netherlands Bureau for Economic Policy Analysis.
    19. Morgenroth, Edgar & FitzGerald, John (ed.), 2006. "Ex-ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013," Research Series, Economic and Social Research Institute (ESRI), number PRS59.
    20. Morgenroth, Edgar & FitzGerald, John & FitzGerald, John, 2006. "Productive Sector," Book Chapters, in: Morgenroth, Edgar (ed.),Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013, chapter 20, pages 257-277, Economic and Social Research Institute (ESRI).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:anname:v:516:y:1991:i:1:p:36-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.