S-Space College of Social Sciences (사회과학대학) Institute of Economics Research (경제연구소) Seoul Journal of Economics Seoul Journal of Economics vol.10(4) (Winter 1997)
Multinational Corporations, Capital Mobility and the Global Neo-Liberal Regime
- Crotty, James; Epstein, Gerald; Kelly, Patricia
- Issue Date
- Seoul Journal of Economics, Vol.10 No.4, pp. 297-340
- In this paper we analyze two related aspects of the current globalization process. The first is the relation between the activities of multinational corporations(MNCs) and the economic well being of workers in the North. In particular, we ask whether the increase in capital mobility associated with the world-wide movement of liberalization, deregulation, and privatization has contributed to the problems of high unemployment, wage stagnation and rising inequality. The second concern of the paper is the impact of the evolution of the Neo-liberal global regime(NLR) itself on economic well-being in the North and South. Here we make two basic arguments. First, Neo-liberal institute and practices tend to generate inadequate global aggregate demand growth and thus high global unemployment, unleash destructive competitive processes, and weaken government's ability to regulate business in the interest of the public. Second, the force of global Neo-liberalism is so powerful that it has become difficult if not impossible for countries to maintain non-Neo- liberal economic structure.