British Direct and Portfolio Investment in Latin America Before 1914

Abstract

This article aims to determine what changes occurred in Britain's control over its Latin American investments between 1865 and 1913. This is done by examining trends in the direct-portfolio composition of total investment and of private investment, as well as that of each industrial grouping. A major finding is the rise of British private portfolio investment. Differences in the capital market instruments used in each type of investment are analyzed as is the nationality of those controlling private portfolio investment. Finally, there is an assessment of major factors associated with the rise of the private portfolio component of investment.