The Symbiosis between Capital Account Liberalization and Foreign Direct Investment

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Sofiane, M. (2018). The Symbiosis between Capital Account Liberalization and Foreign Direct Investment. Innovative Journal of Business and Management, 7(01). Retrieved from http://innovativejournal.in/index.php/ijbm/article/view/2098
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Abstract

The mechanisms that link one economy to the others are diverse. This diversity comes from the fatality and the necessity for the economies to be interacted according to the trade and investment principles. In order to ensure the fairness and the smoothing of this interaction, the several economic activities inside and outside must be systematically recorded. In this context, the capital account holds flows that prevail between the country and the rest of the world, and it is responsible for revealing the economic position of the country vis-à-vis the others. The liberalization of this account creates distinguished dimensions of operation management both in terms of accounting and impact. This paper sheds light on the measures of the capital account liberalization and their effect on the foreign direct investment magnitude

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