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.
I would like to acknowledge the invaluable assistance of John Talbot in the preparation of this paper. I would also like to thank Ha-Joon Chang, Richard Kozul-Wright, Bob Rowthorn, and the other participants at the Cambridge meeting on Transnational Corporations and the Global Economy for their very useful comments on my earlier draft of this paper.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Amsden, Alice, 1989. Asia’s Next Giant: South Korea and Late Industrialization. New York: Oxford University Press.
Arthur, Brian W., 1990. ‘Positive feedbacks in the economy’, Scientific American, February, 92–99.
Bennett, Douglas and Kenneth Sharpe, 1985. Transnational Corporations vs the State: The Political Economy of the Mexican Auto Industry. Princeton, NJ: Princeton University Press.
Bonacich, Edna et al. (eds), 1994. Global Production: The Apparel Industry on the Pacific Rim. Philadelphia: Temple University Press.
Cardoso, Fernando Henrique, and Enzo, Faletto, 1979. Dependency and Development in Latin America. Berkeley: University of California Press.
CEPAL (Comisibn Econ6mica para América Latina y el Caribe), 1995. Panorama Econdmico de América Latina — 1994. Santiago de Chile: CEPAL.
Chang, Ha-joun, 1994. The Political Economy of Industrial Policy. London: Macmillan.
Diaz, Alvaro, 1995. La Industria Chilena Entre 1970–1994: de la sustituciön de importaciones a la segunda fase exportadora. Santiago de Chile: CEPAL.
Economist, The 1995. ‘A survey of multinationals’ (special survey, 24 June).
Encarnation, Dennis, 1989. Dislodging the Multinationals: India’s Strategy in Comparative Perspective. Ithaca, NY: Cornell University Press.
Ernst, Dieter and David O’Connor, 1992. Competing in the Electronics Industry: The Experience of Newly Industrializing Countries, an OECD Development Centre Study. Paris: OECD.
Evans, Peter, 1979. Dependent Development: The Alliance of Multinational, State, and Local Capital in Brazil. Princeton, NJ: Princeton University Press.
Evans, Peter, 1995. Embedded Autonomy: States and Industrial Transformation. Princeton, NJ: Princeton University Press.
Fouraker, Lawrence and John Stopford, 1968. ‘Organizational structure and multinational strategy’, Administrative Science Quarterly, 13: 47–64.
Frank, Andre Gundar, 1967. Capitalism and Underdevelopment in Latin America. New York: Monthly Review Press.
Frischtak, Claudio, 1992. ‘The international market and the competitive potential of national producers of equipment and systems’, pp. 165–196 in Peter Evans, Claudio Frischtak and Paulo Tigre (eds), High Technology and Third World Industrialization: Brazilian Computer Policy in Comparative Perspective, (Research Series no. 85). Berkeley, CA: International and Area Studies.
Gereffi, Gary, 1995. ‘Global production systems and Third World development’, pp. 100–142 in B. Stallings (ed.), Global Change, Regional Response: The New International Context of Development. New York: Cambridge University Press.
Gerschenkron, Alexander, 1962. Economic Backwardness in Historical Perspective. Cambridge, MA: Belknap.
Graham, Edward M. and Paul Krugman, 1993. ‘The surge in direct foreign investment in the 1980s’, in Kenneth Froot (ed.), Foreign Direct Investment. Chicago IL: NBER/University of Chicago Press.
Hirschman, Albert, 1977. ‘A generalized linkage approach to development, with special reference to staples’, Economic Development and Cultural Change, 25 (supplement), 67–97.
Jenkins, Rhys, 1977. Dependent Industrialization in Latin America: The Automotive Industry in Argentina, Chile and Mexico. New York: Praeger.
Kim, Linsu, 1991. ‘National system of industrial innovation: Dynamics of capability building in Korea’, paper presented at the National Technical System Project, Columbia University.
Kronish, Richard and Kenneth Mericle, 1984. The Political Economy of the Latin American Motor Vehicle Industry. Cambridge, MA: MIT Press.
Krugman, Paul R., 1987. ‘Strategic sectors and international competition,’ pp. 207–232 in Robert M. Stern (eds) US Trade Policies in a Changing World Economy. Cambridge, MA: MIT Press.
Krugman, Paul R., 1990. Rethinking International Trade. Cambridge, MA: MIT Press.
Lardner, James, 1988. ‘The sweater trade,’ The New Yorker, 11 January 39–73.
Lupo, Leonard and Julius Freidlin, 1975. ‘US direct investment abroad in 1974’, Survey of Current Business, 55 (10), 43–64.
Mataloni, Raymond J. Jr., 1990. ‘US multinational companies: Operations in 1988’, Survey of Current Business, June, 31–44.
North, Douglass C., 1990. Institutions, Institutional Change and Economic Performance. Cambridge, England: Cambridge University Press.
O’Donnell, Guilermo, 1979. ‘Tensions in the bureaucratic-authoritarian state and the question of democracy’, in David Collier (ed.), The New Authoritarianism in Latin America. Princeton, NJ: Princeton University Press.
Pizer, Samuel and Frederick Cutler, 1960. US Business Investments in Foreign Countries. Washington, DC: US Department of Commerce.
Porter, Michael E., 1990. The Competitive Advantage of Nations. New York: The Free Press.
Romer, Paul, 1994. ‘The Origins of Endogeneous Growth’, J. of Econ. Perspects. 8(1), 3–22. [Winter, 1994].
Rowthorn, Robert, 1995. ‘Notes on East Asian development,’ paper presented at the UNCTAD meeting on development of East and South-East Asia and a New Development Strategy — The Role of Government, Geneva, October 30–31.
Rowthorn, Robert, 1992. ‘Intra-industry trade and investment under oligopoly: The role of market size’, The Economic Journal, 102 (March), 402–414.
Schurman, Rachel, 1993. ‘Economic development and class formation in an extractive economy: The fragile nation of the chilean fishing industry, 19731990’, unpublished Ph D dissertation, Department of Sociology, University of Wisconsin.
Schurman, Rachel, 1995. ‘Snails, southern hake and sustainability: The contradictions of Chile’s natural resource-led export growth’, unpublished ms., Department of Sociology, Berkeley, CA.
Schware, Robert, 1992. ‘Software industry entry strategies for developing countries: A “walking on two legs” proposition’. World Development, 20, (2 February), 143–164.
Shapiro, Helen, 1988. State Intervention and Industrialization: the Origins of the Brazilian Automotive Industry. Ph D dissertation, Department of Economics, Yale University.
Shapiro, Helen, 1994. Engines of Growth: The State and International Auto Companies in Brazil. New York: Cambridge University Press.
Shepard, Phil, 1985. ‘Transnational corporations and the international cigarette industry’, in Richard Newfarmer (ed.), Profits, Progress and Poverty: Case Studies of International Industries in Latin America. Notre Dame, IN: University of Notre Dame Press.
Simon, Herbert, 1965. Administrative Behaviour. New York: The Free Press.
Stallings, Barbara (ed.), 1995. Global Change, Regional Response: The New International Context of Development. New York: Cambridge University Press.
Stallings, Barbara (ed.), 1992. ‘The role of foreign capital in economic growth’, in G. Gereffi and D. Wyman, Manufacturing Miracles. Princeton, NJ: Princeton University Press.
Stallings, B. and Wolfgang Streeck, 1995. ‘Capitalisms in conflict? The United States, Europe and Japan in the post-cold war world’, pp. 67–99 in B. Stallings (ed.), Global Change, Regional Response: The New International Context of Development. New York: Cambridge University Press.
Stopford, John and Louis Wells, 1972. Managing the Multinational Enterprise. New York: Basic Books.
Taylor, Charles R., 1991. Global Presence and Competitiveness of US Manufacturers. New York: Conference Board report no. 977.
United Nations, 1993. World Investment Directory. Vol. III Developed Countries. New York: United Nations.
Vernon, Raymond, 1968. ‘Economic sovereignty at bay’, Foreign Affairs, 47 (1), 122.
Editor information
Editors and Affiliations
Copyright information
© 1998 The United Nations University/World Institute for Development Economics Research
About this chapter
Cite this chapter
Evans, P. (1998). Transnational Corporations and Third World States: From the Old Internationalization to the New. In: Kozul-Wright, R., Rowthorn, R. (eds) Transnational Corporations and the Global Economy. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-26523-7_7
Download citation
DOI: https://doi.org/10.1007/978-1-349-26523-7_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-26525-1
Online ISBN: 978-1-349-26523-7
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)