Should we reduce barriers to

Should we reduce barriers to the free flow of capital across national boundaries?

Even in the developing countries? Daniel Drezner argues yes, in this Tech Central Station column: "Against Sedentary Lifestyles".

"The argument for why capital account liberalization spurs greater economic growth is simple. Robust economic growth is strongly correlated with a high degree of "financial development," which means the size, sophistication and innovation of a country's equity markets, bond markets, and banking sectors. Critics suggest that economic growth leads to sophisticated capital markets, not vice versa. However, empirical studies reveal that financial development is robustly correlated with future rates of economic growth, increased productivity, and high rates of investment. Another study demonstrates that countries that liberalize their equity markets experience a one percent increase in their annual real economic growth. The more developed the financial markets, the better for society -- but not necessarily the state..."

There are live links in the quote, but you'll have to go to his column to access them.