Book contents
- Frontmatter
- Contents
- Preface
- Introduction
- Ragnar Nurkse: Trade and Development
- 1 Causes and Effects of Capital Movements (1934)
- 2 The Schematic Representation of the Structure of Production (1935)
- 3 Conditions of International Monetary Equilibrium (1945)
- 4 Domestic and International Equilibrium (1947)
- 5 International Monetary Policy and the Search for Economic Stability (1947)
- 6 Growth in Underdeveloped Countries (1952)
- 7 Problems of Capital Formation in Underdeveloped Countries (1953)
- 8 Period Analysis and Inventory Cycles (1954)
- 9 A New Look at the Dollar Problem and the United States Balance of Payments (1954)
- 10 International Investment To-day in the Light of Nineteenth-Century Experience (1954)
- 11 The Relation between Home Investment and External Balance in the Light of British Experience, 1945–1955 (1956)
- 12 Reflections on India's Development Plan (1957)
- 13 Balanced and Unbalanced Growth (1957)
- 14 International Trade Theory and Development Policy (1957)
- 15 Trade Fluctuations and Buffer Policies of Low-income Countries (1958)
- 16 Patterns of Trade and Development (1959)
- Notes
- Bibliography
11 - The Relation between Home Investment and External Balance in the Light of British Experience, 1945–1955 (1956)
Published online by Cambridge University Press: 05 March 2012
- Frontmatter
- Contents
- Preface
- Introduction
- Ragnar Nurkse: Trade and Development
- 1 Causes and Effects of Capital Movements (1934)
- 2 The Schematic Representation of the Structure of Production (1935)
- 3 Conditions of International Monetary Equilibrium (1945)
- 4 Domestic and International Equilibrium (1947)
- 5 International Monetary Policy and the Search for Economic Stability (1947)
- 6 Growth in Underdeveloped Countries (1952)
- 7 Problems of Capital Formation in Underdeveloped Countries (1953)
- 8 Period Analysis and Inventory Cycles (1954)
- 9 A New Look at the Dollar Problem and the United States Balance of Payments (1954)
- 10 International Investment To-day in the Light of Nineteenth-Century Experience (1954)
- 11 The Relation between Home Investment and External Balance in the Light of British Experience, 1945–1955 (1956)
- 12 Reflections on India's Development Plan (1957)
- 13 Balanced and Unbalanced Growth (1957)
- 14 International Trade Theory and Development Policy (1957)
- 15 Trade Fluctuations and Buffer Policies of Low-income Countries (1958)
- 16 Patterns of Trade and Development (1959)
- Notes
- Bibliography
Summary
In the title of this paper readers will recognize a standard subject of theoretical discussion and practical concern. Yet the relationship in question is worth reexamining. Why exactly should two individual items—domestic investment and the balance of external payments—be picked out from the national income accounts and viewed as having some direct connection with each other? And why should this particular relationship be looked upon as one of rivalry? In the economy as a whole a given claim on resources competes with all other claims on resources, and any causal connection assumed between two particular groups of claimants must be a priori suspect. A peculiar link between home investment and external balance can nevertheless be said to exist on certain general grounds which will be considered later. The connection is especially close in the British economy because of some structural features of British trade and industry. In fact, a recurrent conflict between the needs of internal capital development and external trade balance has figured prominently in British experience during the ten-year period since the war. In this paper we start, then, with a discussion of the United Kingdom's economic structure and experience (sections I, II, and III), attempting thereafter to look at the matter in more general terms (sections IV and V). In a final section we return to consider the special case of the United Kingdom, with some reference to current economic developments and policies.
- Type
- Chapter
- Information
- Ragnar NurkseTrade and Development, pp. 261 - 314Publisher: Anthem PressPrint publication year: 2009