AMERICAN PENETRATION AND CANADIAN DEVELOPMENT: A CASE STUDY OF MATURE DEPENDENCY.

The strongest empirical evidence of dependency has been the finding of an increasingly negative effect of extensive foreign capital penetration on the subsequent economic growth of the host. This long-run structural effect of foreign direct investment is based on cross-national comparisons over the period 1960-75, with samples of up to ninety-one countries. To date, the structural effect has not been replicated for rich (core) country samples. We suggest that the failure of researchers to substantiate the dependency effects in the core hinges on two problems: I) the need to identify "mature economic dependency" as a variation in the structure of core economic development, and 2; the need to model mature dependency with longitudinal rather than cross-national research designs. In this paper, we use time series data to illustrate the long-term negative effects of Amen can direct investment on post-World War!! economic growth in Canada. [ABSTRACT FROM AUTHOR]