| Abstract: | Abstract World-system theory, dependency theory, and other critical perspectives indicate that activities of transnational corporations (TNCs) promote hunger in the Third World. However, cross-national research on effects of dependence has largely ignored this fundamental manifestation of underdevelopment. This study examines the impact of transnational corporate investment on food consumption in 60 countries. Per capita consumption of calories and protein from 1970 to 1985 is regressed on 1967 transnational corporate investment penetration (investment stocks), 1967 consumption, and appropriate controls. The results strongly support perspectives critical of TNCs. Transnational corporate penetration has a substantial detrimental effect on food consumption which grows with the length of the lag between penetration and the dependent variables. This finding is confirmed by robust regression analysis. Over the 1967–1985 period, countries with minimal transnational corporate penetration are estimated to have gained approximately 700 more calories and 20 more grams of protein consumption per person per day than countries with maximal transnational corporate penetration. |
