U.S. Multinational Companies: Effects on Global Poverty

Abstract

The objective of this article is to determine the effect of U.S Multinational Companies (US-MNC) in reducing poverty in a group of 45 high and upper-middle-income countries where they have operated for the period 2009-2018. The determining factors of the attraction of US-MNC to these countries are also estimated and it is verified whether they affect poverty. A dynamic panel data econometric methodology (sys-GMM) is used. For the analysis, the total sample and sub-samples of countries are considered based on their commercial status with the United States. It is found that US-MNC positively influence poverty reduction and that the significant determinants of their attraction are at the same time poverty reducing factors. Consequently, the EU-MNCs can be considered as a central mechanism of the global dynamics of poverty