Reverse Flow Foreign Investment: Colonial Indonesia’s Investment in Metropolitan Countries.

Although this paper challenges the standard viewpoint that foreign direct investment actually occurred in colonial times it also finds parallels with today’s international finance. Evidence shows that the reverse flow of funds was infinitely much greater than possible foreign investment for at least...

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Publicado en:Journal of Contemporary Asia Vol. 44; no. 1; pp. 108 - 125
Autor principal: Gordon, Alec
Formato: Artículo
Publicado: Taylor & Francis Ltd Jan2014
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jan2014
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      pub: Taylor & Francis Ltd
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        10.1080/00472336.2013.839199
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        atl: Reverse Flow Foreign Investment: Colonial Indonesia’s Investment in Metropolitan Countries.
      aug:
        au: Gordon, Alec
        affil: 2/290 Vipavadi Rangsit 25, Thung Song Hong, Laksi, Bangkok, Thailand 10210
      su:
        China
        Indonesia
        Investments
        History
        Foreign investments
        Economic conditions in colonies
        Surplus (Economics)
        Balance of payments
        Indonesian economy
        Dutch colonies
      sug:
        subj:
          Investments
          History
          China
          Indonesia
          Miscellaneous Financial Investment Activities
          Investment Advice
          International Trade Financing
          Foreign investments
          Economic conditions in colonies
          Surplus (Economics)
          Balance of payments
          Indonesian economy
          Dutch colonies
      keyword:
        colonial exploitation
        colonial surplus
        origins of colonial investment
        Reverse flow of investment
        colonial exploitation
        colonial surplus
        origins of colonial investment
        Reverse flow of investment
      ab: Although this paper challenges the standard viewpoint that foreign direct investment actually occurred in colonial times it also finds parallels with today’s international finance. Evidence shows that the reverse flow of funds was infinitely much greater than possible foreign investment for at least one colony, the Netherlands East Indies (colonial Indonesia). We calculate for the late colonial period (1880–1939) out of its total colonial surplus at least US$430 billion in today’s terms (about three-quarters of the total) was available for investment. This was far in excess of actual investment. Less than one-third of the available for investment went to colonial Indonesia and a further one-third was invested in other countries. The remainder is attributed to investment in the Netherlands (mainly portfolio), investment by non-Dutch corporations and to some statistical errors and omissions. Furthermore, we indicate their actual vital function within the global economic and financial organisation of the Netherlands in late colonial times. The probability of similar occurrences today is raised.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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