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Multinationals and Development$
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Alan M. Rugman and Jonathan P. Doh

Print publication date: 2008

Print ISBN-13: 9780300115611

Published to Yale Scholarship Online: October 2013

DOI: 10.12987/yale/9780300115611.001.0001

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Institutional Governance and Development

Institutional Governance and Development

(p.103) Chapter 6 Institutional Governance and Development
Multinationals and Development

Alan M. Rugman

Jonathan P. Doh

Yale University Press

This chapter draws on the growing literature on the importance of governance and institutional advancement as a precondition for successful development, and on the damaging effects of institutional deficiencies on development. It uses corruption as an illustration to underscore the importance of the relationships between governance and development, and to show how MNEs—in conjunction with NGOs, home and host governments, and international institutions—can support institutional development and good governance. The chapter reviews the historic MNE–host government bargaining model and critique in light of (1) a greater understanding of the benefits of MNE investment for host developing countries and (2) the growth of international institutions and agreements under which host countries voluntarily agree to improve their institutional development and governance.

Keywords:   governance, institutional advancement, corruption, international institutions, developing countries

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