FOREIGN-CAPITAL FLOWS IN THE CENTURY OF BRITAIN INDUSTRIAL-REVOLUTION- NEW ESTIMATES, CONTROLLED CONJECTURES

This article analyses the foreign capital flows during the period of t he industrialization of Britain. The British balance of payments and t he components of total saving are estimated for the eighteenth century . The data reveal that Britain was then running a current account defi cit and was a net importer of capital. It finds that the inflows of fo reign capital, mostly Dutch, and not only domestic national savings we re needed to finance investment associated with the industrial revolut ion.