Transnational Corporations and Development Policy: Critical by Eric Rugraff, Diego Sánchez-Ancochea, Andy Sumner (eds.)

By Eric Rugraff, Diego Sánchez-Ancochea, Andy Sumner (eds.)

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2001. Just How Big Is Global Production Sharing? In Arndt S. and Kierzkowski H. Eds Fragmentation: New Production Patterns in the World Economy. Oxford University Press: Oxford. Zysman J. 2004. Transforming Production in a Digital Era. In Dutton, W. et al. Eds. Transforming Enterprise. MIT Press: Cambridge. 2 What Do We Know about the Developmental Impacts of TNCs? 1 Introduction The rapid growth of Foreign Direct Investment (FDI) in many developing and transition countries relative to other variables such as public development aid or domestic capital formation, suggests that inward FDI has come to play a more significant role than it did some decades ago.

Integration of Trade and Disintegration of Production in the Global Economy. Journal of Economic Perspectives. 12 (4): 31–50. Feenstra R. and Hanson G. 1999. , 1972–1990. Quarterly Journal of Economics. August, 114 (3): 907–940. Feenstra R. and Hanson H. 1996. Foreign Investment, Outsourcing and Relative Wages. , Grossman G. and Irwin D. Eds. The Political Economy of Trade Policy: Papers in Honor of Jagdish Bhagwati. The MIT Press: Cambridge. Friedman T. 2005. The World is Flat: Brief History of the Globalized World in the 21st Century.

In non-democratic countries the rent may be cornered by a minority group and in countries following ‘Washington consensus policies’ the money may be exclusively channelled to market-creating institutions. Cross-country studies using econometrics fail to find a positive correlation between FDI and poverty alleviation. Agénor (2002) detects no correlation between FDI and poverty alleviation in a sample of 11 developing countries and Milanovic (2002), in a sample of 89 developing countries, finds no association between FDI and income growth at any level of income.

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