Attitudes and government policies towards FDI as well its characteristics have varied
considerably over time.18 From 1880 and until the first decades of the twentieth century, for
example, FDI grew exponentially and became heavily concentrated in the exploitation of natural
resources. World War I and the nationalization of foreign property in Russia in 1917 dealt heavy
blows to FDI, but it was the onset of the Great Depression in 1929 that marked the end of its
golden era. Between the 1930s and the 1970s, there was a worldwide growth in restrictions
because governments became more concerned about the impact FDI had on their economies.
After decades of skepticism, in the 1980s international events reshaped the attitude towards FDI
as the debt crisis severed developing countries’ access to credit and portfolio investment. In
addition, there was a shift in the industries in which foreign firms were active compared to the
post war period, which involved mostly the exploitation of oil and natural resources, towards
manufacturing, services, and high technology.