Globalisation, Multinational Corporation and Regional Development∗

L. RathaKrishnan and K. Santhy

Management and Labour Studies, 2002, vol. 27, issue 3, 191-198

Abstract: Economic reforms introduced in India during 1991–92 had triggered the process of economic development in the country. It is from this period a structural shift occurred in Indian industry. The liberalization has also facilitated the Indian industries to sell their products throughout the world market. As the multinational Corporation normally own, manage, and control production, they can sell their products all over the world without much difficulty. After the announcement of globalization in India, the number of multinational corporation had increased from 389 (1981) to 2303 (1996), about six fold increase in 15 years period. The present paper examines how multinational corporations help regional development. A case study approach was followed. Both primary and secondary data were collected from the Whirlpool India Limited for a period of 18 years, starting from 1983–84 to 2000–01. By using simple growth rate and regression analysis this study found that there is a favourable shift in employment and infrastructure development in the region. After the establishment of the MNC, the region has received various benefits, namely employment, better road and transportation, local markets, hospitals, street lights, drinking water and other infrastructural facilities. Further more, this MNC has not harmed the growth of tiny and small scale industries in the region. In fact, the MNC has helped many small-scale industries to establish their industries in the region.

Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:sae:manlab:v:27:y:2002:i:3:p:191-198

DOI: 10.1177/0258042X0202700304

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