[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-324483-105":59,"doc-detail-324483-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","foreign-capital-inflows-another-trojan-horse","Foreign Capital Inflows - Another Trojan Horse?","","Foreign Capital Inflows - Another Trojan Horse? analyzes the skepticism surrounding unsolicited foreign gifts, focusing on the 1980s surge in foreign investment in the U.S. economy since 1982. It discusses hidden costs, including possible foreign control of the economy and inefficient uses such as financing consumption and government spending. Using accounting identities, it evaluates how foreign inflows affect saving, investment, deficits, and long-run living standards, emphasizing ballpark allocation estimates.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/foreign-capital-inflows-another-trojan-horse/324483/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/foreign-capital-inflows-another-trojan-horse/324483.png","ImageObject",300,407,{"name":92,"@type":93},"Anda","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-08","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":44},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What concerns does the commentary raise about foreign capital inflows?","Question",{"text":112,"@type":113},"It highlights worries that foreign capital may carry hidden costs, including enabling foreigners to gain control of the economy and being used in unproductive ways such as financing additional government spending and household consumption.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How does the document explain the relationships among saving, investment, and foreign inflows?",{"text":117,"@type":113},"It uses an accounting identity where total national saving must be matched by gross private investment plus government deficit spending, implying foreign investment changes can affect investment and saving balances.",{"name":119,"@type":110,"acceptedAnswer":120},"What does the analysis suggest about where foreign investment mainly goes in the 1980s?",{"text":121,"@type":113},"It argues that, contrary to popular perception, most of the windfall is used to fund U.S. investment, with a majority of foreign funds financing business investment and investment-type spending by consumers.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},324483,1790013620,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":44,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},962075006959,"https://ap-avatar.wpscdn.com/avatar/e0002397efbe92a78e?_k=1776741047341049297","# Foreign Capital Inflows:Another Trojan Horse?\n\nby Gerald H.Andersonand Michael F.Bryan  \nA  \nt least since that fateful day whenthe ancient Greeks offered a giantwooden horse to the citizens of Troy,unsolicited gifts from foreigners havebeen viewed with a certain skepticism.One is tempted to make a parallel casein the 1980s regarding the tremendouslevel of foreign investment occurring inthe U.S.economy.  \nSince 1982,the cumulative net inflowof funds into the United States fromforeign nations has totaled more than$700 billion.As this river of dollarsflows into the United States,many inthis country are worried that there maybe some hidden costs associated withthe seeming windfall.  \nOne concerm is that the influx offoreign capital may ultimately allowforeigners to gain control of oureconomy—a view that has been dis-missed in several recent publications.Another concem is that we are usingthese funds in unproductive ways—primarily to finance additional spend-ing by the U.S.govemment and con-sumption by households,instead of forproductivity-enhancing investments.?²  \nThis Economic Commentary examinesaspects of recent foreign investmentin the United States.We calculate howmuch of the recent net capital inflowbenefits different kinds ef spending.Our measures are not precise,butshould be regarded as ballpark  \nestimates of foreign investment's rolein U.S,resource allocation.  \n## ■ Going With the Flow\n\nTo examine the uses of foreign invest-ment,it is helpful to understand the ac-counting relationships among foreigncapital inflow,gross private domesticinvestment,and domestic saving.  \nFor every use of funds,there must be asource of funds.In the case of the na-tional economy,there are three broadsources of funds:saving by domestichouseholds,or personal saving;savingby domestic firms,or business saving;and saving by foreigners,or foreigninvestment.  \nTo complete the identity,saving in aneconomy must be \"used,\"or borrowed,by others in the economy.In this case,the total value of saving must bematched by gross investment in theprivate economy plus deficit spendingby the government.³  \nFrom this investment-saving identity(see table 1),we see that increases inforeign investment will have at leastone of four possible effects.They canfinance additional gross investment,finance larger govemment deficits,orinduce an offsetting saving decrease byeither U.S.businesses or households.  \nThe fluid operation of markets shouldensure that foreign investment is put to  \nThe U.S.economy has been awash inforeign investment for nearly the en-tire decade of the 1980s.A close lookat the destinations of this net inflowof funds reveals that,contrary to pop-ular perception,most of the windfallis being used to fund US.investment.  \nwork where it is most wanted.But thelong-run implications of debt,foreignor otherwise,on U.S.prosperity wouldseem to depend on whether that debtwas being used for investment pur-poses or to finance consumption.  \nIf the capital inflow is financing invest-ment,then U.S.productivity is en-hanced by the foreign capital inflow.Conversely,if the foreign capital iscompensating for reductions in per-sonal or business saving,or is financ-ing an increase in the governmentdeficit,then foreign investment mightbe financing current U.S.consumption,and might therefore have a negative ef-fect on future U.S.living standards.  \nFollowing the flow of foreign money toits ultimate destination is not an easytask:it is comparable to tracking a dropof water after it drips into a full bucket.Consequently,we must infer from in-direct evidence exactly how the foreignfunds are being used.At first glance,theindirect evidence strongly argues thatthe foreign saving inflow is supporting  \nhousehold consumption and govem-ment spending rather than business in-vestment.More detailed analysis,how-ever,indicates that a majority of theinflow of foreign funds is financingbusiness investment and investment-type spending by consumers.  \nTable 2 shows data on saving,invest-m","cbCaibautCjffV2o","https://ap.wps.com/l/cbCaibautCjffV2o","pdf",1141126,"English","# Going With the Flow\n## Foreign investment accounting identity\n## Possible effects of foreign investment\n## Evidence on allocation and investment destinations\n## Saving, investment, and deficit comparisons","[{\"question\":\"What concerns does the commentary raise about foreign capital inflows?\",\"answer\":\"It highlights worries that foreign capital may carry hidden costs, including enabling foreigners to gain control of the economy and being used in unproductive ways such as financing additional government spending and household consumption.\"},{\"question\":\"How does the document explain the relationships among saving, investment, and foreign inflows?\",\"answer\":\"It uses an accounting identity where total national saving must be matched by gross private investment plus government deficit spending, implying foreign investment changes can affect investment and saving balances.\"},{\"question\":\"What does the analysis suggest about where foreign investment mainly goes in the 1980s?\",\"answer\":\"It argues that, contrary to popular perception, most of the windfall is used to fund U.S. investment, with a majority of foreign funds financing business investment and investment-type spending by consumers.\"}]","Foreign Capital Inflows - Another Trojan Horse? | PDF",1789968046,13]