MULTINATIONAL CORPORATIONS AND SOCIO-ECONOMIC DEVELOPMENT IN DEVELOPING COUNTRIES

Abstract

Multinational corporations (MNCs) are playing a prominent role in the socio-economic growth and development in many developing countries. However, despite this significant role their story of development is not told by all as it is widely speculated that multinational corporations are agents of exploitation. This study sought to investigate multinational corporations and socio-economic development in developing countries. Neoliberal and stakeholders theoretical approaches were used in the study. The study revealed that multinational corporations performed vital roles such as employment generation, improvement of infrastructural development, poverty alleviation, building competence and local skills of local workers. The study further revealed that highly paid skilled labour are not received by local workers, workers are exploited, profit repatriated, and out-model technologies are transferred and environments are polluted in most developing countries by multinational corporations. The study recommends that government of developing countries should initiate regulatory laws that can discourage multinational corporations from exploiting and engaging in policies that are not beneficial to developing countries. Moreso, developing countries should initiative economic policies that will attract multinational corporations to invest in their countries considering the significant benefit its citizens gained with regards to employment, poverty alleviation, economic growth and development.