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- World Investment Report 1992
- Chapter
Transnational corporations, trade and growth
- Author: United Nations Conference on Trade and Development
- Main Title: World Investment Report 1992 , pp 197-221
- Publication Date: December 1992
- DOI: https://doi.org/10.18356/c844ffc3-en
- Language: English
The preceding three chapters examined the role of TNCs in economic growth through an assessment of their contribution to the supply-side determinants of growth. In addition, the rate of growth is influenced by international trade. Though trade is not a factor input such as capital and labour, it has a significant bearing on economic growth because trade provides opportunities to expand and improve the production of goods and services. Accordingly, the impact of TNCs on growth through their role in international trade is addressed in this chapter. This role is crucial since the growth of international production has made TNCs influential in terms of determining the volume, direction and composition of a substantial and increasing proportion of international trade.
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