State or Market: The Development of the Ecuadorian Banana Industry

Abstract

An extensive literature surrounds the question of the relationship between multinational corporations (MNCs) and economic development. East Asia is frequently cited as an example of a decidedly positive relationship between MNCs and economic development. In contrast, case studies drawn from the Latin American region tend to emphasize the negative consequences for economic development. Even within Latin America, however, the pattern is far from uniform, with some countries evidencing strongly positive outcomes from MNC investments. Most of this literature interprets the varying consequences of MNCs for economic development in terms of factors related to the market, and to the role of the state.