Some seventy years ago, at its peak, British investment in Canada accounted for over 20 per cent of British annual capital exports, and in the twenty-five years before World War I, for about 70 per cent of the capital flowing into Canada.This study separates direct from portfolio investment (the form British investment has been assumed to prefer) and, on the basis of an analysis of the records of a thousand British companies active in the country, develops figures for UK direct investment in Canada from 1890 to 1914. It also suggests reasons for the decline of investment after the war: British firms found themselves at a disadvantage because there was little devolution of management to Canada and because few subsidiary companies were formed. British Direct Investment in Canada, 1890-1914 fills an important gap in our historical statistics and also opens a significant field in Canadian economic history. It should also prove interesting to students of British imperialism and capitalism.
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