Induced International Saving
Induced international saving is to be distinguished from autonomous international saving. Induced saving is defined as the net flow of current credits that can be said to owe its existence to foreign investment made in the same or earlier periods. Autonomous international saving is the flow of saving that would be achieved in any given period in the absence of any capital transactions because C P exceeded CC*.
KeywordsForeign Investment Direct Investment Competitive Ratio Saving Rate Trade Balance
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