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International capital mobility in an era of globalisation: adding a political dimension to the 'Feldstein–Horioka Puzzle'

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Watson, Matthew. (2001) International capital mobility in an era of globalisation: adding a political dimension to the 'Feldstein–Horioka Puzzle'. Politics (Oxford), Vol.21 (No.2). pp. 81-92. ISSN 0263-3957

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Official URL: http://dx.doi.org/10.1111/1467-9256.00139

Abstract

The debate about the scope of feasible policy-making in an era of globalisation continues to be set within the context of an assumption that national capital markets are now perfectly integrated at the international level. However, the empirical evidence on international capital mobility contradicts such an assumption. As a consequence, a significant puzzle remains. Why is it, in a world in which the observed pattern of capital flows is indicative of a far from globalised reality, that public policy continues to be constructed in line with more extreme variants of the globalisation hypothesis? I attempt to solve this puzzle by arguing that ideas about global capital market integration have an independent causal impact on political outcomes which extends beyond that which can be attributed to the extent of their actual integration.

Item Type:

Journal Article

Subjects:

H Social Sciences > HG Finance
H Social Sciences > HB Economic Theory

Divisions:

Faculty of Social Sciences > Politics and International Studies

Library of Congress Subject Headings (LCSH):

Macroeconomics, International finance, Capital movements, Globalization -- Economic aspects

Journal or Publication Title:

Politics (Oxford)

Publisher:

Wiley-Blackwell Publishing Ltd.

ISSN:

0263-3957

Official Date:

May 2001

Dates:

Date	Event
May 2001	Published

Volume:

Vol.21

Number:

No.2

Page Range:

pp. 81-92

Identification Number:

10.1111/1467-9256.00139

Status:

Peer Reviewed

Access rights to Published version:

Open Access

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