What Global Resources to Finance Long-Term Investment?

While the current account imbalances are increasing between major economic areas, most industrialized countries are experiencing a rapid aging. Faced with a growing world population, these differences could undermine the funding of productive investments. This article successively explores the role of contemporary current accounts, of FDI and international portfolio investments and at last of demographic factor. With the exception of some industrialized countries able to maintain an efficient domestic productive system, the majority exhibits a relative decline to the benefit of emerging countries, including their ability to attract foreign savings. The United States differ by the volume and structure of their international capital flows. Overall, more aging in industrialized countries is increasing, the less their savings deficit, but probably at the expense of their economic growth. From a macroeconomic perspective, the life-cycle theory would therefore be checked only as a transitory phenomenon.