Multinational Corporations And Economic/Digital Technological Divide: An Analytical Approach To Global Economic Integration

Abstract

Globalization is becoming a dominant characteristic of the world economy.  It is exerting its sway over world markets; it’s asymmetrical effect on developed and developing economies is becoming more visible, particularly in recent years. The multinational corporations (MNCs), which are driving and leading this globalization process, are generating again controversies with respect to their role in developing economies.  A digital and economic divide is being created between the haves and the haves-not. Did the multinational corporations contribute to reduce or increase this gap?  An analytical model is developed in this paper to understand and examine the impact of inward direct investment on developing countries.