Capitalist Penetration: Concept and Measurement

Abstract

Based on a survey of definitions of dependence offered by leading contemporary dependencia theorists, this essay commences by suggesting that the form of dependence critical to dependen cia theory is capitalist penetration. This concept is rigorously defined; inherent problems for both understanding and measurement are detailed. A measurement strategy appropriate to aggregate cross-national studies (or tests) of dependencia theory is suggesed, using such indicators as foreign patents and trademarks, public external debt, direct foreign investment, and imports of capital goods. Applying this strategy to a sample of less developed countries in 1970, measures are generated which are compared with the results of Hveem's efforts to measure a similar concept. While the two measures co-vary for most peripheral countries, the measured outlined here shows much more variation than Hveem's among Latin American countries. This discrimination in the levels of penetration in Latin America is offered as one piece of empirical evidence for the usefulness of this measure.