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Transnational Corporations and Third World States: From the Old Internationalization to the New

In: Transnational Corporations and the Global Economy

Author

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  • Peter Evans

Abstract

A generation ago, controversies over the impact of transnational corporations (TNCs) in the Third World were central to scholarly debates on the political economy of development. Articulate defenders of TNCs as effective instruments for spreading prosperity to poor countries (for example, Raymond Vernon, 1968) clashed with theorists of imperialism and ‘dependency’ (for example, Andre Gundar Frank, 1967) who saw foreign investors as bearing prime responsibility for lags and distortions in the progress of Third World countries. In this debate the Third World state was set up as the principal opposing political force. Critics of TNCs hoped that states might correct distortions and speed up growth by bargaining with TNCs or excluding them. Proponents of TNCs saw states as carriers of irrational nationalism, whose parochial fear of TNC economic power robbed their countries of a crucial source of economic betterment.

Suggested Citation

  • Peter Evans, 1998. "Transnational Corporations and Third World States: From the Old Internationalization to the New," Palgrave Macmillan Books, in: Richard Kozul-Wright & Robert Rowthorn (ed.), Transnational Corporations and the Global Economy, chapter 6, pages 195-224, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-26523-7_7
    DOI: 10.1007/978-1-349-26523-7_7
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    Cited by:

    1. Martina Fromhold-Eisebith, 2002. "Regional Cycles of Learning: Foreign Multinationals as Agents of Technological Upgrading in Less Developed Countries," Environment and Planning A, , vol. 34(12), pages 2155-2173, December.
    2. Hansen, Michael W. & Pedersen, Torben & Petersen, Bent, 2009. "MNC strategies and linkage effects in developing countries," Journal of World Business, Elsevier, vol. 44(2), pages 121-130, April.
    3. Arslan Razmi, 2005. "The Effects of Export-Oriented, FDI-Friendly Policies on the Balance of Payments in a Developing Economy: A General Equilibrium Investigation," UMASS Amherst Economics Working Papers 2005-03, University of Massachusetts Amherst, Department of Economics, revised Sep 2006.

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