A Century of Foreign Investment in the Third World

Financial Integration, Investment, and Economic Growth: Evidence from Two Eras of Financial Globalization

“…The degree of international financial integration reached before 1914 was truly impressive. In the decades before World War I, gross foreign investments in relation to gross domestic product (GDP) in 1913 stood at about 200% in Argentina, Chile, and South Africa and at or above 100% in countries such as Brazil, Mexico, Egypt, and Malaysia-actually about twice as high as the corresponding figures at the end of the 1990s (Twomey, 2000;Obstfeld & Taylor, 2004;Schularick, 2006). Not only North and South America were well integrated into the international capital market.…”

“…, Woodruff (1966) dfigdp2 Change in net international investment position (regression 11) Jones and Obstfeld (1997), Taylor (2002), Twomey (2000) Human capital edu Years of secondary schooling Barro Sarkees (2000) THE REVIEW OF ECONOMICS AND STATISTICS 768…”

“…Financial integration variable is gross inflow of capital from the United Kingdom in regressions 7-9 from Stone (1999), change in gross foreign liabilities to GDP between 1900 and 1914 in regression 10 from Feis (1965), Woodruff (1966), andTwomey (2000). In regression 11, the financial integration variable is the change in net international investment to GDP between 1900 and 1913/14, which was derived from current account balances in Jones and Obstfeld (1997), Taylor (2002), and international investment positions from Twomey (2000). To provide comparability and avoid estimation bias arising from missing data for some countries in some years, the sample is restricted to a balanced sample for 1900 to 1913.…”

National cultural differences and foreign direct investment in emergent countries

“…Furthermore, culture cannot be considered as a fundamental determining variable in international business. Twomey (2002) explained that the expansion of FDI inflows in ex-colonies risks minimizing behavior because of the similarity in legal and political traditions between the host and home countries. Finally, from the economic point of view, any serious consideration of the investment in foreign markets must take into account the hypotheses of the eclectic paradigm (Dunning, 1980).…”

Desigualdad y especialización en el crecimiento de las economías templadas de nuevo asentamiento, 1870–1940

“…Se trata de montos de inversión extranjera directa hacia 1913 en térmi-nos per cápita y como porcentaje del producto (Twomey, 1998). Los settlers «dominan» la escena cuando se evalúa la inversión extranjera per cápita, ubicándose entre los primeros siete lugares 17 , probablemente como consecuencia de sus características demográficas típicas de zonas con escasa población.…”