Globalization, Natural Resources and Foreign Investment: A View from the Resource-Rich Tropics
AbstractThis article uses data drawn from Southeast Asia and West Africa to help explain the geographical distribution of foreign investment. Why during late nineteenth- and early twentieth-century globalization did the attributes of abundant natural resources, mass migration and export expansion that attracted large foreign investment to the New World not similarly draw capital to the tropics? I argue that in a number of tropical countries, rich natural resources and cheap labour available through mass migration effectively substituted for foreign borrowing. At the same time, the dominant institution of colonialism throughout Southeast Asia and West Africa limited borrowing from abroad and helped to ensure that even for these resource-rich countries capital flows remained slight.
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Bibliographic InfoPaper provided by Business School - Economics, University of Glasgow in its series Working Papers with number 2007_16.
Date of creation: Jul 2007
Date of revision:
19th century UK foreign investment; tropical growth; globalization; vent-for-surplus; natural resources; institutions; colonialism;
Find related papers by JEL classification:
- N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
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