World economy, level development and income distribution: An integration of different approaches to the explanation of income inequality

Bornschier, Volker

doi:10.1016/0305-750x(83)90083-9

Cited by 36 publications

(26 citation statements)

References 8 publications

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“…For instance, Beer' s analysis of data for the mid-1980s reveals not stronger, but weaker, eff ects from TNC presence on inequality than the studies on the late 1960s. In Bornschier' s study on inequality around 1967 (Bornschier 1983: Table 1), including TNC presence as an additional predictor increases the explanatory power of the model (i.e., the adjusted R-square) by 17 percent points, whereas the corresponding increase in Beer' s model amounts to only 10 percent points. However, no defi nite conclusions can be drawn from this diff erence, since the studies employ diff erent operational defi nitions of inequality: Beer uses the top 10 and the top 20 share of total income to measure inequality, whereas Bornschier utilizes the more common Gini index.…”

Section: Income Inequalitymentioning

confidence: 99%

Transnational Corporations in World Development Still the Same Harmful Effects in an Increasingly Globalized World Economy?

Herkenrath

Bornschier

2003

JWSR

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Transnational corporations (TNCs) have reached historically unprecedented weight and power in the worlds political economy. Thus, the old question of how these corporations a?ect global development is nowadays more signi?cant than ever. While some scholars claim that corporate globalization will eventually close the worldwide development gap, many others contend that TNC activities lead to insu?cient exploitation of growth potentials within the host country, thereby hindering convergence of national income levels. The present study aims at assessing the validity of these controversial positions by confronting them with the results of past and present empirical research. In the ?rst part, we examine the e?ect of TNC presence on intra-national income inequality by reviewing the most recent cross-national studies dealing with this issue. In the second part, we present the results of our own research, which analyzes the e?ect of TNC presence on economic growth in a sample of 84 countries. The contemporary empirical evidence discussed in the ?rst part as well as the results of our own analyses tend to con?rm earlier ?ndings. They suggest that dependence on TNC activities increases inequality without adding to economic growth. However, the strong negative e?ect of TNC presence on growth found in analyses of data from the late 1960s cannot be reproduced in our contemporary analysis. In a signi?cant number of cases, the potentially harmful consequences of TNC activities seem to have been overcome by adequate countervailing state actions.

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Section: Income Inequalitymentioning

confidence: 99%

Transnational Corporations in World Development Still the Same Harmful Effects in an Increasingly Globalized World Economy?

Herkenrath

Bornschier

2003

JWSR

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“…Th e empirical work of Bornschier, Chase-Dunn and others always found a positive relationship between the degree of foreign capital penetration (by transnational corporations) and income inequality in non-core countries (ChaseDunn 1975, Bornschier and Ballmer-Cao 1979, Bornschier 1983, Bornschier and Chase-Dunn 1985. Recent research by Alderson and Nielsen (1999) consolidated this earlier fi nding for a wide range of 488 observations over the whole postwar era.…”

Section: Details On the Propositions And First Empirical Evaluationsmentioning

confidence: 55%

“…Th e new technological style (Perez 1983(Perez , 1985Bornschier [1988] 1996) which has been emerging since the 1970s is obviously more knowledge-based as compared to the previous one. It has produced highly productive new lead sectors-telematics and biotechnology.…”

Section: (3) the Role Of Technological Changementioning

confidence: 92%

“…Th e famous Kuznets thesis for the development of inequality over the economic history of core countries implied an inverted U-shape form for the inequality in the transition from agriculture to industry (Bornschier 1983). Actually, core countries have to a diff erent degree started to enter a new kind of transition, this time from the old industry of the mass production era to the knowledge-based new economy.…”

Section: Core Countriesmentioning

confidence: 99%

“…Th is social arrangement culminated between the mid-1960s and the mid-1970s while it increasingly decayed from the 1970s onward (see Bornschier, [1988Bornschier, [ ] 1996. Th e 1980s and the 1990s witnessed diff erent approaches to the new societal model of the "extented market sphere in the telematics era.…”

Section: Details Of the Available Evidence For The Change In Income Dmentioning

confidence: 99%

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Changing Income Inequality in the Second Half of the 20th Century Preliminary Findings and Propositions for Explanations

Bornschier

2002

JWSR

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There exists a rather widespread professional consensus that income inequality both within and between societies in the world system has increased over the last quarter of a century. This, however, does not represent a secular trend since inequality between WWII and the 1970s was rather stable or decreasing. For the increasing inequality both within and between societies since the 1970s we present fresh evidence which helps to settle open questions of previous research. Less consensus has been achieved until now with regard to explanations. Arguing that monocausal explanatory schemes are of little help, the paper suggests eight propositions for an explanation. The evaluation of them is also enriched by diverse pieces of preliminary empirical evidence. The paper also brie?y considers which factors are responsible for a rather transitory increase and those which suggest a lasting higher level of inequality in the world.

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A globalization‐oriented perspective on health, inequality and socio‐economic development

Tausch

2012

Health Planning & Management

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As correctly predicted by quantitative sociology, but largely overlooked by the medical profession, the development style, implied by a high MNC penetration of their host countries, reflects the oligopolistic power, which transnational corporations wield over local economies. We took up an idea from Austro-American economist Joseph Alois Schumpeter (1883-1950), which states that the long-term effects of oligopolistic power are negative and lead toward economic and social stagnation. Our data show that although MNC penetration indeed led to certain short-term growth effects after 1990, today, social polarization and stagnation increase as a consequence of the development model, based on high MNC penetration. There is a negative trade-off between MNC penetration and health, both in terms of life expectancy and avoiding under-five mortality. But it can be shown for the 115 countries with complete data that Richard G. Wilkinson's hypothesis still plays an important role in explaining deficient health development in the world system, once we control for the effects of MNC penetration-driven globalization.

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World economy, level development and income distribution: An integration of different approaches to the explanation of income inequality

Cited by 36 publications

References 8 publications

Transnational Corporations in World Development Still the Same Harmful Effects in an Increasingly Globalized World Economy?

Transnational Corporations in World Development Still the Same Harmful Effects in an Increasingly Globalized World Economy?

Changing Income Inequality in the Second Half of the 20th Century Preliminary Findings and Propositions for Explanations

A globalization‐oriented perspective on health, inequality and socio‐economic development

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World economy, level development and income distribution: An integration of different approaches to the explanation of income inequality

Cited by 36 publications

References 8 publications

Transnational Corporations in World Development  Still the Same Harmful Effects in an Increasingly Globalized World Economy?

Transnational Corporations in World Development  Still the Same Harmful Effects in an Increasingly Globalized World Economy?

Changing Income Inequality in the Second Half of the 20th Century  Preliminary Findings and Propositions for Explanations

A globalization‐oriented perspective on health, inequality and socio‐economic development

Contact Info

Product

Resources

About

Transnational Corporations in World Development Still the Same Harmful Effects in an Increasingly Globalized World Economy?

Transnational Corporations in World Development Still the Same Harmful Effects in an Increasingly Globalized World Economy?

Changing Income Inequality in the Second Half of the 20th Century Preliminary Findings and Propositions for Explanations