Multinational Corporate Penetration Research Articles

Neo-Liberal Trade and Investment Policies, the ITGA and Youth Smoking Rates: A Cross-National Analysis of Developing Nations

Past evidence suggests that economic globalization and the spread of neo-liberal policies are leading to higher adult smoking rates in the developing world, but currently there are no cross-national analyses examining the impact of economic globalization and neo-liberal policies on youth smoking rates in the developing world. This study seeks to fill the gap in the literature regarding youth smoking and neo-liberal policies by conducting the first cross-national panel analysis of youth smoking rates in the developing world. Using data from the Global Youth Tobacco Survey (GYTS), the World Bank, Freedom House, and United Nations for over 90 nations, this study expands the use of dependency theory to test for the negative externalities of neo-liberal trade and investment policies on health. Specifically, this study examines the relationship between increasing international trade, multinational corporate penetration, and membership in the International Tobacco Growers Association (ITGA) on youth smoking rates in developing nations using first difference scores. The results show support for the hypothesis that increasing international trade dependency and membership in the ITGA are correlated with increasing youth smoking rates in the developing world.

Economic Dependency, Repression, and Deforestation: A Quantitative, Cross‐National Analysis*

This research builds upon previous cross‐national studies of deforestation. In doing so, I examine how various world‐systems indicators interact with political conditions within a nation. I test the hypothesis that repressive nations create a “good business climate” for multinational capital, which, in turn, affects deforestation. This “good business climate” consists of economic incentives (e.g., tax holidays), regulatory concessions (e.g., environmental law exemptions), and imposed political stability (e.g., outlawing strikes, protests, and unions). The results indicate that export partner concentration, commodity concentration, multinational corporate penetration, and International Monetary Fund conditionality increase deforestation more at higher rather than at lower levels of repression. I also confirm previous findings that gross domestic product per capita decreases deforestation, indicating that richer nations are able to externalize their environmental costs onto poorer nations. I conclude with the theoretical implications of this research, policy implications, and possible directions for future research.

Foreign Investment and Disparities in Economic Development and Poverty Reduction

To remain economically competitive in the 21st century a nation must be able to secure resources beyond its borders and protect itself from other nations trying to do the same. While the situation has been shown to be more complex, the original assumption among world system researchers remains that multinational corporate penetration in the periphery can have negative effects on their prospects for economic development. But we now know that these negative effects upon long-term economic development can be prevented. The existence of a strong development state can be critical for this protection. In addition to supplying ‘good governance’ (as the World Bank now calls it), a strong development state can provide protection in the global economy so that multinational corporate penetration is beneficial rather than harmful to less developed nations. But given the importance of a strong development state it is surprising that little research has been directed to the question of how a nation acquires a development state and ‘good governance.’ To begin answering this question, this article focuses on the countries of Southeast Asia. After examination of the wide contrast among Southeast Asian nations with respect to economic development and poverty reduction, a comparative-historical analysis is employed to develop a model which helps us explain these contrasts. Previous research on economic development in East and Southeast Asia only recognized the impact of ‘Asian values’ on unity, respect for authority, and a work ethic among the masses. Beginning with the impact of ancient civilizations and the potential for nation-building, this research also suggests the importance of a sense of national identity and responsibility among elites. The model then turns to how this potential for a strong development state can be affected by different aspects of colonialism. Finally, the article considers the model’s potential application to Africa and Latin America in helping us understand differing rates of economic success for other periphery and semiperiphery nations in the modern world system.

Multinational Corporations, Democracy and Child Mortality: A Quantitative, Cross-National Analysis of Developing Countries

This study presents quantitative, sociological models designed to account for cross-national variation in child mortality. We consider variables linked to five different theoretical perspectives that include the economic modernization, social modernization, political modernization, ecological-evolutionary, and dependency perspectives. The study is based on a cross-lagged effects regression analysis of a sample of 59 developing countries. Our preliminary analysis based on additive models replicates prior studies to the extent that we find that indicators linked to economic and social modernization have beneficial effects on child mortality. We also find support for hypotheses derived from the dependency perspective suggesting that multinational corporate penetration fosters higher levels of child mortality. Subsequent analysis incorporating interaction effects suggest that the level of political democracy conditions the effects of dependency relationships based upon multinational corporations. Transnational economic linkages associated with multinational corporations adversely affect child mortality more strongly at lower levels of democracy than at higher levels of democracy–that is intranational, political factors interact with the international, economic forces to affect child mortality. We conclude with some brief policy recommendations and suggestions for the direction of future research.

Dependency, democracy, and infant mortality: a quantitative, cross-national analysis of less developed countries

This study presents quantitative, sociological models designed to account for cross-national variation in infant mortality rates. We consider variables linked to four different theoretical perspectives: the economic modernization, social modernization, political modernization, and dependency perspectives. The study is based on a panel regression analysis of a sample of 59 developing countries. Our preliminary analysis based on additive models replicates prior studies to the extent that we find that indicators linked to economic and social modernization have beneficial effects on infant mortality. We also find support for hypotheses derived from the dependency perspective suggesting that multinational corporate penetration fosters higher levels of infant mortality. Subsequent analysis incorporating interaction effects suggest that the level of political democracy conditions the effects of dependency relationships based upon exports, investments from multinational corporations, and international lending institutions. Transnational economic linkages associated with exports, multinational corporations, and international lending institutions adversely affect infant mortality more strongly at lower levels of democracy than at higher levels of democracy: intranational, political factors interact with the international, economic forces to affect infant mortality. We conclude with some brief policy recommendations and suggestions for the direction of future research.

School-Enrollment Rates and Trends, Gender, and Fertility: A Cross-National Analysis

The analysis of the association between educational status and fertility decline is performed 1) by examining the rates of enrollment in primary and secondary schools by gender and 2) by assessing the effects of the change/spread in rates of enrollment between 1965 and 1986. 59 countries were involved in the cross-sectional analysis. Variables included the logged crude birth rate, total enrollment rates, enrollment rates by gender, male-female ratios, the growth rate for each educational measure by world system status (core, peripheral, and semiperipheral countries), control variables (economic growth, family planning, multinational corporate penetration, women's labor force participation, child mortality rate, social insurance programs), and enrollment changes. The evidence reflects a strong association between levels of enrollment of girls in primary and secondary school and gender inequality and fertility declines. Caldwell's theory of the flows of wealth and the spread of education effect was found to have little support. High levels of female enrollment and low levels of gender inequality in access to schooling are associated with fertility declines. Caldwell's theory is that this indicates a decline in patriarchy, change in women's familial roles and a shift to a more egalitarian family structure. Increases in female education mean higher status and more power for women.

Multinational Corporate Penetration, Industrialism, Region, and Social Security Expenditures: A Cross-National Analysis

This study examines the determinants of spending on social security programs. We draw predictions from industrialism and dependency theories for the explanation of social security programs. The explanations are tested with data on seventy-five nations, representative of core, semipheripheral and peripheral nations. Industrialization variables such as the percentage of older adults and economic productivity have strong effects in models involving all nations, as does multinational corporate (MNC) penetration in extraction, particularly when region is controlled; such penetration is negatively associated with spending on social security. We then look at industrialism and dependency effects for peripheral and non-core nations alone. The effects of all industrialization variables, except economic productivity, appear insignificant for peripheral nations, while the effects of region and multinational corporate penetration in extractive and agricultural industries appears significant. Models involving all non-core nations (peripheral and semi-peripheral) look more like models for all nations than for peripheral nations alone.

Investment Dependence and Alternative Explanations of Third World Mortality: A Cross-National Study

Dependency perspectives contend that foreign investment promotes underdevelopment in the Third World whereas diffusionist perspectives argue that it promotes development. Earlier cross-national research conceptualized development as economic growth or inequality. This study conceptualizes development as basic needs satisfaction focusing on infant mortality and life expectancy at 1 year of age. Mortality effects of 1967 multinational corporate penetration and foreign aid dependence are assessed for 63 underdeveloped countries in panel models expanding to 1980. Other variables affecting mortality include multinational corporate investment flows secondary school enrollment and changes in birth rates and government health spending. Aid dependence has no effects. Multinational corporate penetration has significant harmful effects on mortality that tend to increase with time. In addition to harmful effects on infant mortality penetration has small benefits for infant mortality via promotion of health spending. The influence of multinational corporate penetration on mortality appears to be mediated in part by inequality. (Authors).

Dependence, Distorted Development, and Fertility Trends in Noncore Nations: A Structural Analysis of Cross-National Data

To evaluate the hypothesis that dependence on developed nations distorts demographic development in less developed countries (LDCs) a researcher used panel regression analysis to study variables from 62 nations. Multinational corporate penetration an estimate of the shares of both a nations capital and its labor that are controlled by developed country based transnational corporations was used as a measure of the level of dependence. The analysis demonstrated that school enrollment was highly correlated with level of development social insurance program history and both family planning effort (FPE) measures. In addition countries that underwent the most economic growth the most concerted FPEs etc. had the most rapid decline in fertility rates. Conversely those with high levels of multinational corporate penetration/dependency experienced either an increase in fertility or a slow decline. For example South Koreas 1965 CBR was 36 below the population mean of 45. In 1984 the CBR dropped to 20 even further below the population mean of 39 a dramatic absolute and relative fertility decline. South Korea also had the highest rate of economic growth and its increase in family planning program effort was dramatic: from no measurable effect in 1972 to the nation with the highest FPE score in 1982. In addition the level of multinational penetration was modest. In conclusion this research supports the view that intranational economic phenomena such as rate of economic growth and concerted FPEs contribute significantly to fertility decline. On the other hand multinational corporate penetration distorts development and impedes fertility reduction.

Multinational Corporate Penetration, Protest, and Basic Needs Provision in Non-Core Nations: A Cross-National Analysis

In this paper, we investigate the determinants of domestic well-being in less-developed countries. In particular, we examine the impact of both penetration of foreign investment and levels of domestic political protest on economic growth and the provision of basic needs. Our work is an attempt to explore the effects of both international economic processes and intranational political processes on development.

Multinational Corporate Penetration, Protest, and Basic Needs Provision in Non-Core Nations: A Cross-National Analysis

Multinational Corporate Penetration, Protest, and Basic Needs Provision in Non-Core Nations: A Cross-National Analysis