ABSTRACT
The following analyses utilize roughly the same data and economic growth models used previously in Chapter 3 to test the relationship between foreign capital and growth. I retain the rates of investment of both foreign and domestic investment given their strong relationship with growth. Leaving foreign capital in the models also allows me to hold constant the argument that foreign investment may in fact compensate for the growth effects within autocracies, such as China and the Asian and Latin American NICs. It is only in these slight changes that my growth models are different from the standard Barro-type growth models that dominate the literature. As mentioned previously, I do not follow Barro (1998) in every respect, but replicate as closely as possible his influential analyses on this topic.
