Foreign Capital and Take-Off
There is a strong temptation to begin any paper on Take-off with a section debating the whole concept, but that temptation I will resist. The discussion of ‘Foreign Capital and Foreign Exchange in Take-off’ is planned for the end of the ten-day conference and by the time this is reached the preliminary ground of whether take-off is an historically valid generalization will have been ploughed over and harrowed down to a fine tilth. So, for the purposes of this paper, I will plunge in with two assumptions: (i) that in the history of most advanced economies we can identify two or three decades in which some sectors strategic to further growth and industrialization grew with new pace and with new firmness; and (ii) that these take-off periods are roughly those suggested in Rostow’s Economic Journal article of March 1956. Accepting the take-off proposition uncritically for the moment, then, what can we say about the part played by foreign capital in the process ?
KeywordsForeign Investment Foreign Exchange Credit Rating Foreign Capital Sustained Growth
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