“…And, as the rate of overseas investment seems to have been greatest when the terms of trade were against Britainthe 1880's being an exceptional period when special factors in the United States offset the general tendency -Cairncross concludes that 'it was foreign investment that pulled Britain out of most depressions before 1g14'. 1 Seen, therefore, from the point of view of Britain's part in the world economy, rather than in purely domestic terms, capital exports no longer seem to have been forced out of the British economy by the selfish interests of the capitalists to maintain artificially high interest rates, and become, as Professor Nurkse has described them, 'a means whereby a vigorous process of economic growth came to be transmitted from the centre to the outlying areas of the worl8.2 That is to say that the force behind the export of capital was the pull exerted by urgent need for capital in the newly-developing countries, who, because of their higher potential productivity and because markets were available for their exports, could afford to pay higher rates of interest than were obtainable in Britain. Yet, important though it was in explaining why the British and European investor chose to send his capital abroad, this differential in rates of interest should not be overestimated.…”