Multinational Enterprises and the New Development Paradigm: Consequences for Host Country Development

The New Development Paradigm (NDP) integrates the theoretical and empirical views on development that have gained prominence since the mid-1990s. In particular the multifaceted nature of development objectives-including social and ecological development next to economic growth-and the critical role of institutions in the development process characterize the NDP. This new perspective has important consequences for understanding the role of Multinational Enterprises in fostering development. This paper addresses these implications and delineates a research agenda that pays systematic attention to the wide variety of direct and indirect, active and passive ways in which MNEs can (and do) affect sustainable development.