Influence of Capital Exports on Exports and Employment in Capital Exporting Countries

Abstract

In the last chapter we dealt with some of the various motives for capital exports. Whatever these motives — the endeavour to spread out the risks of production or to extend markets, or to take part in the economic development of less developed countries — the profit incentive is quite properly always present. Whilst through successful private capital exports the whole economy will benefit from the return flow of profits, it is by no means so certain that this gain is also, from the overall economic point of view, i.e. that of the Government of the capital exporting country, the decisive driving force behind capital exports. We must therefore investigate whether there are in developed industrial countries other and possibly more important economic motives which make capital exports attractive.