A contribution of foreign direct investment, clean energy, trade openness, carbon emissions and economic growth to energy demand in UAE

We reconsider the role of foreign investment in income inequality in light of recent critiques that question the results of quantitative cross-national research on foreign capital penetration. We analyze an unbalanced cross-national data set in which countries contribute different numbers of observations, with a maximum of 88 countries and 488 observations, dated from 1967 to 1994. Random-effects regression models that control for unmeasured country heterogeneity are used to investigate effects of foreign capital penetration on inequality (measured as the Gini coefficient) against the background of an internal-developmental model of inequality. We adapt Firebaugh's (1992, 1996) critique of the literature on the effect of foreign investment on economic growth to the study of income inequality and find that the stock of foreign direct investment has an effect on inequality that is independent of the mechanisms identified by Firebaugh. We explore Tsai's (1995) claim that the effect of foreign capital penetration is spurious and find that foreign stock has a significant positive effect on inequality net of region-specific differences. An alternative interpretation of the findings of the foreign investment/inequality literature is discussed in light of the discovery of an inverted-U shaped relationship between income inequality and foreign investment stock per capita. We conclude that thinking on the relationship between income inequality and investment dependence should be revised in light of an investment-development path relating the inflow and outflow of foreign capital to economic development.

Income inequality, development, and dependence: A reconsideration

L'A. affirme que la theorie du systeme mondial se presente comme une des approches les plus pertinentes en ce qui concerne l'analyse comparative du developpement. Il s'efforce d'evaluer le bien-fonde de cette perspective en ce domaine. Il analyse un certain nombre de donnees collectees en 1993 dans 163 pays. Il examine pour chacun d'eux la place qu'il occupe au sein du systeme mondial, son degre de dependance, son niveau de developpement et de performance economique. Il tente de mettre a jour la structure de ce type de systeme

https://www.jstor.org/stable/pdfplus/2096362.pdf

The world system paradigm as general theory of development : A cross-national test

Chapter 27 Transnational corporations and direct foreign investment

The role of state policy in the industrialization of Third World nations has become the subject of increasing interest in recent years. In the past, the debate over economic development has either focused on the traditional modernization approach' or the dependency theory of underdevelopment.2 Dependency theorists base their model of development on the belief that foreign investment from core countries is harmful to developing nations' long-term economic growth. Economic relationships between the core and the periphery are structurally detrimental for the latter because of the inherent dynamics of international capitalism. Yet, despite the claims of dependency theory, the recent experience of the East Asian newly industrialized countries suggests a wider range of development possibilities which include government policies specifically designed to attract foreign investment. These countries appear to have structured their domestic economies in order to mitigate the pernicious effects of dependent relationships with core countries. This raises new questions about the development process and the role of policy and foreign investment in the economic transactions between core and peripheral countries. Dependency theory, a neo-Marxist predecessor of world-systems research, claims that First World nations become wealthy by extracting surplus labor and resources from the Third World. Capitalism perpetuates a global division of labor which causes the distortion of developing countries' domestic economies, declining growth, and increased income inequality.3 Those countries on the periphery cannot become fully modernized as long as they remain in the capitalist world

/pdf/trade-strategy-and-the-dependency-hypothesis-a-comparison-of-ckgwc6p348.pdf

Trade Strategy and the Dependency Hypothesis: A Comparison of Policy, Foreign Investment, and Economic Growth in Latin America and East Asia

Recent efforts by North American social scientists to devise systematic empirical tests for a series of propositions purportedly drawn from structural theories of dependency have focused largely on the consequences of foreign economic linkages for the economies of developing countries. Although the results of these tests have been received with considerable skepticism by dependentistas and neo-positivists alike, cross-national, quantitative studies of the dependence-development relationship are not without value: they have focused research on a central problem, namely the effects of various forms of economic linkages on rates and types of economic development. This concentration of research activities, in particular the current spate of replications, has yielded new empirical knowledge concerning these relationships, plus some intriguing conflicting evidence. This is now sufficient to support further inquiry in itself, independent of the confines of dependencia theories which gave rise to the research originally.

First World-Third World linkages: external relations and economic development

The lomé convention and europe's relationship with the third world: A critical analysis∗

The Ottawa Process is inexplicable in the context of conventional international relations. The process was driven by a nexus of NGO and state ‐ a ‘bottom up’ process compared to the Certain Conventional Weapons (CCW) process and process represented by the Conference on Disarmament (CD). The states pushing the ban campaign were, for the most part, traditional followers rather than global leaders. According to Dolan and Hunt, a more sober assessment of the multilateral negotiation process reveals somewhat more ambiguity than supporters of the so‐called “multilateral innovative process” acknowledge. This ambiguity reflects the schizophrenic nature of multilateralism in the contemporary era. The authors examine the multilateralism underpinning the Ottawa Process and how the negotiations competed with the parallel, existing CCW process and the anti‐personnel mine discussions in the CD, in the months prior to the Oslo Diplomatic Conference in September 1997. Since the Ottawa Process could not have happened unde...

Negotiating in the Ottawa process: The new multilateralism

An analysis of Canada's foreign policy toward the United States from 1963 to 1972 is used in a test of a theory of foreign policies of subordinate states in asymmetrical dyads. In this theory the interaction of two conditions—the state of a nation's economy and the extent of concentration in its linkages with a superordinate power, along with a set of conditioning environmental factors—are used to explain the foreign policy actions of the subordinate state. The findings confirm the importance of the two main exogenous factors and the environmental variables, but the interactive effect of economic performance and linkage concentration is not corroborated. In particular the statistical effects of the economic performance variable on the foreign policy indicators are positive where a negative sign was predicted.

Asymmetrical Dyads and Foreign Policy: Canada-U.S. Relations 1963-1972

The results of a previous test of a theory of foreign policies of subordinate states in asymmetrical dyads conducted on Canada-United States relations in the 1963-72 period are used as a foundation for a modification of the original theory and a revised empirical test. In the reformulated theory, three conditions-the state of the economy of the superordinate and the subordinate nations, the extent of concentration in the latter's linkages with the superordinate power, and a set of

Michael B. Dolan

Papers

First World-Third World linkages: external relations and economic development

The lomé convention and europe's relationship with the third world: A critical analysis∗

Negotiating in the Ottawa process: The new multilateralism

Asymmetrical Dyads and Foreign Policy: Canada-U.S. Relations 1963-1972

Foreign Policy in Asymmetrical Dyads: Theoretical Reformulation and Empirical Analysis, Canada-United States Relations, 1963-1972