Transnational Companies and Direct Private Investment in Developing Countries

  • Alfredo Eric Calcagno
  • Jan Kñakal
Part of the Vienna Institute for Comparative Economic Studies book series (VICES)


There is no need to stress the importance of the role played by the transnational companies in world economic development from the standpoint both of the industrialised and of the developing countries. Few subjects have received more attention in recent years, as is shown by the voluminous bibliography and by the growing number of institutions engaged in analysing this phenomenon; these include the United Nations Centre on Transnational Corporations (CTC) and the Joint CEPAL/CTC Unit. In recent years CEPAL has published several papers dealing with the Latin American experience in this field (1).


Foreign Direct Investment Host Country Foreign Investment Natural Rubber Transnational Corporation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. (1).
    See the select bibliography below. In this chapter, the authors draw particularly on items 3, 5 and 7 of this bibliography.Google Scholar
  2. (2).
    Coffee, cocoa, sugar, natural rubber, cotton, jute, sisal and henequen, copper, tin, meat, peanuts, copra, palm kernel, wood, iron ore, phosphates, manganese, aluminium, fish, fruits, vegetables, tobacco, leather, pulp and paper, wool, lead and zinc. See UNCTAD, The processing before export of primary commodities: areas for further international cooperation, Geneva, December 1978.Google Scholar
  3. (3).
    Copper, bauxite, phosphates, natural rubber, cotton, jute, hides and skins, non-coniferous timber, cocoa and coffee. See UNCTAD, The processing… op.cit.Google Scholar
  4. (4).
    See UNCTAD, Proportion between export prices and consumer prices of selected commodities exported by developing countries, Nairobi, May 1976.Google Scholar
  5. (5).
    See UNCTAD, Mobilisation des ressources intérieures. Pays membres de l’Organization des pays exportateurs de pétrole (OPEP) et développement (paper by consultant Abdelkader Sid-Ahmed, October 1978).Google Scholar
  6. (6).
    See UNCTAD, The processing… op. cit.Google Scholar
  7. (7).
    The range of average investment costs in minerals and metals activities was estimated as follows (at 1975 costs): for the setting up of an aluminium plant of 500,000 tons/annual capacity, $ 1,200 million; a copper plant of 100,000 tons/years, $ 600 million; an iron-ore pellets plant of 10,000,000 tons/year (66 per cent Fe content), $ 800 million; a nickel plant of 25–30,000 tons/year, $ 480 million; a lead plant of 100,000 tons/year, $ 140 million; a zinc smelting plant of 50,000 tons/year, $ 80 million; (see UN Economic and Social Council, Committee on Natural Resources, Geneva, document E/C. 7/68, 29 March 1977).Google Scholar
  8. (8).
    UN Centre on Transnational Corporations, Transnational Corporations in World development: a re-examination (E/C. 10/38) March 1978 pp. 35 and 236; UN, Statistical Yearbook 1978.Google Scholar
  9. (9).
    See Lawrence G. Franke, The European Multinationals, London, Harper and Row, 1976, p. 126.Google Scholar
  10. (10).
    See US Department of Commerce, Survey of Current Business Vol. 57, No. 2.Google Scholar
  11. (11).
    See CEPAL, The economic relations of Latin America with Europe, Santiago, Chile, May 1979.Google Scholar
  12. (12).
    The accounting price system is described in H. F. Lydall, International Trade and Employment, ILO, Geneva, 1978.Google Scholar
  13. (13).
    See Raymond Vernon, Sovereignty at bay, London, Longman, 1971, p. 171 and the refutation of this thesis in Daniel Chudnovsky, Empresas multinacionales y ganancias monop6/icas en una economia latinoamericana, Buenos Aires, Siglo XXI Editores, 1974.Google Scholar
  14. (14).
    This discussion is based on studies 2 and 3 of the select bibliography.Google Scholar
  15. (15).
    See the Guatemala Appraisal adopted in ECLA resolution 362 (XVII), in the series Cuadernos de la CEPAL, No. 17, 1977, paragraphs 169 to 173.Google Scholar

Copyright information

© The Vienna Institute for Comparative Economic Studies 1981

Authors and Affiliations

  • Alfredo Eric Calcagno
  • Jan Kñakal

There are no affiliations available

Personalised recommendations