Colonialism and foreign ownership of Capital
- London Croom Helm 1982
- 108p.
Foreign control of capital is a major problem for many developing countries. A country may often rely wholly on a foreign country for the supply of capital which is frequently provided for political rather than economic reasons. The freedom to determine the amount of capital brought into the host country gives the foreign owners political and other leverage.
In this way, fooign ownership can lead to a form of colonial control being excised over a developing country. The implications of this phenomenom for trade theory and the amount of grasse that fogn countries can clart are discussed in detail. The opening chapter examines the themes of de industrialisation, of stagnation after an initial spurt in sconomic activity, and the promise that inflows of capital do not necessarily generate growth and expansion