The profitability of the agricultural sector attracted foreign capital for railways and industries. British capital investments went from just over £20 million in 1880 to £157 million in 1890. During the 1880s, investment began to show some diversification as capital began to flow from other countries such as France, Germany and Belgium, though British investment still accounted for two thirds of total foreign capital. In 1890 Argentina was the destination of choice for British investment in Latin America, a position it held until World War I. By then, Argentina had absorbed between 40% and 50% of all British investment outside the United Kingdom. Despite its dependence on the British market, Argentina managed a 6.7% annual rate of growth of exports between 1870 and 1890 as a result of successful geographic and commodity diversification.
The profitability of the agricultural sector attracted foreign capital for railways and industries. British capital investments went from just over £20 million in 1880 to £15?7 million in 1890. During the 1880s, investment began to show some diversification as capital began to flow from other countries such as France, Germany and Belgium, though British investment still accounted :for two thirds of total foreign capital. In 1890 Argentina was the destination of choice for British investment in Latin America, a position it held until World War I. By then, Argentina had abso!rbed between 40% and 50% of all British investment outside the United Kingdom. Despite its dependence on the British market, Argentina managed a 6.7% annual rate of growth of exports between 1870 and 1890 as a result of successful geographic and commodity diversification.