3 Direct Investment, Rising Real Wages, and the Absorption of Excess Labor in the Periphery

Chapters in this book

1. Frontmatter i
2. Contents vii
3. Acknowledgment ix
4. Introduction 1
5. I Origins of G7 Current Account Imbalances
6. 1 From World Banker to World Venture Capitalist 11
7. 2 A Global Perspective on External Positions 67
8. 3 Direct Investment, Rising Real Wages, and the Absorption of Excess Labor in the Periphery 103
9. II Empirical Studies of G7 Current Account and Exchange Rate Adjustment
10. 4 Current Account Deficits in Industrial Countries 133
11. 5 Are There Thresholds of Current Account Adjustment in the G7? 169
12. 6 Current Account Reversals 205
13. 7 Understanding the U.S. Trade Deficit 247
14. 8 Will the Euro Eventually Surpass the Dollar as Leading International Reserve Currency? 283
15. III Theoretical Perspectives on Current Account Sustainability and Adjustment
16. 9 The Unsustainable U.S. Current Account Position Revisited 339
17. 10 Smooth Landing or Crash? 377
18. 11 The Dot-Com Bubble, the Bush Deficits, and the U.S. Current Account 457
19. Contributors 497
20. Author Index 501
21. Subject Index 505