ABSTRACT
The two most important capital gaps specified are the gap between planned investments and expected savings and the gap between export and imports. Capital exports are thus interpreted as a means to overcome accumulation crises of core countries. Associated with the theoretical tradition of the classic liberal model of international capital movements, several historical studies emerged during the 1950s and 1960s focusing on the long-term cyclical dynamic of international capital movements prior to World War I. There are many different but mostly unrelated theoretical concepts in the literature dealing with external indebtedness and the problem of debt-servicing difficulties of sovereign borrowers within the spatiotemporal framework adopted. The principal shortcoming of the theoretical concepts dealing with the topics for an analysis of long-term developments of external indebtedness is their limitation to specific contexts and the lack of reference to other similar situations. Low wages, low prices of land and raw materials promise high yields on investments in less-developed areas.
