Transnational corporations and non-fuel primary commodities in developing countries

Abstract

Abstract This article first reviews trends in the involvement of transnational corporations (TNCs) in the non-fuel commodity industries of developing countries, noting that while the role of these firms in primary production has been eroded somewhat, their role in downstream activities is as strong as ever. Empirical estimates of the “retained value” from these industries are presented, showing that the developing countries generally receive only a part of the value of exports, and only a fraction of the retail price of the end-products of the commodities. The strategies of the developing producer countries are discussed, focusing on the experience of taxation and state participation. The article ends with some brief comments on the prospects for the future.