Capital account openness boosts growth in developed countries, hinders it in developing.
The study looked at how open countries are to foreign investment and how it affects their economic growth. They found that countries that allow more foreign investment tend to grow faster, especially developed countries. In developing countries, restrictions on foreign investment can limit the benefits it brings. The study also showed that countries don't need to be very developed to benefit from foreign investment. Additionally, the researchers found that trading with developed countries can sometimes replace the need for foreign investment.
