Will FDI's Investment Profits Outflow Cause the Current Account Deficit?

摘要

This paper analyzes the limitation of classic Kalecki theory based on globalization and financial liberalization so as to study whether FDI's investment profits outflow will make host countries' current account of BOP deficit, and find that the conclusions of Kalecki theory will be inaccurate as long as host countries scale up their investment overseas and make the income account in Balance of Payments (BOP) positive.