Stiglitz, quoting a recent study said that there was no statistically significant relationship between growth or investment and capital account liberalisation. Also pointing out that one study was not definitive, he added, "the positive benefits of capital account liberalisation do not jump out from the data." He argued that one contributing factor was that capital account liberalisation often meant largershort-term borrowing. However, unlike foreign direct investment, short-term capital does not bring with it ancillary benefits.

Stating that some short-term capital were essential for the economy to run, he added, "but when the saving rate is already high additional short-term capital flows jut increase the vulnerability of the economy."