Worker Influence on Capital Account Policy: Inflow Liberalization and Outflow Restrictions

How do workers impact openness to international investment flows? This article distinguishes between two types of openness: openness to inflows and openness to outflows of investment. Workers benefit from inflow openness due to increases in wages, productivity, and efficiency and due to reductions in borrowing costs, which are associated with investment inflows. Workers are hurt by outflow openness, as investors gain investment options, and...