On the International Flow of Funds

Abstract

In "Notes on the Theory of Imperialism," Monthly Review (March 1966), pp. 15-31 and Monopoly Capital(New York, 1966), pp. I04-108, Messrs. Baran and Sweezy argue that private direct foreign investment is no longer important to matured U.S. capitalism for surplus realization and, in fact, that such activity is a source rather than a use of surplus. They substantiate their argument, erroneously I believe, by juxtaposing two columns of figures, one showing direct foreign investment for each of fourteen years and the other remitted income from foreign investment for those years, showing that the figures in the latter column are greater.

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