The Role of MNCs in Economic Growth

Reply to Szymanski

Datos Bibliográficos

ID10071591
AutoresVolker Bornschier (Sociological Institute, University of Zurich, autor de correspondencia)
Año1984
Volumen28
Número1
Páginas157-164
Fecha de publicación1984-03-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaJournal of Conflict Resolution (JOURNAL)
Identificadores de la revistaISSN: 0022-0027 • E-ISSN: 1552-8766
EditorialSAGE Publishing (PUBLISHER • US)
DOI10.1177/0022002784028001009
OpenAlexW1969107869
IdiomaEN
Citas recibidas1
Referencias citadas5

Szymanski (1984) disputes in his comment my conclusions concerning the role of multinational corporations (MNCs) in development that I presented in an issue of this journal (Bornschier, 1981). I strongly disagree with him when he maintains that my results are clearly fallacious. The theoretical proposition of Szymanski seems to be that either with relative isolation from the world capitalist markets or private capitalism with dependence on foreign investment promotes development, although he assumes the latter to be somewhat less efficient. While I have not suggested a proposition for the long-term growth prospects of state capitalism, I maintain that private capitalist dependent development makes, in the long run, for less development in terms both of economic growth per capita and of an equitable distribution of income. Although income distribution is also central to my argument-and it thus was analyzed in the disputed article-it is not the focus of the present controversy. I conceptualize dependent development as being conditioned by structural links to MNCs headquartered in core countries. MNCs are seen as the dominant organizational form of the world economy, since they also control a majority of foreign trade. I suggest that investment by MNCs is positively harmful (Hans Singer), especially for LDCs, in the sense that it may not only produce growth spurts in the short run, but may add to an intensification of the mentioned structural links, as measured by MNC penetration, which are assumed to go together with a monopolistic control of the economy and unequal development. MNC penetration has a negative long-term effect on subsequent economic

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