The issue of the impacts transnational corporations have on less developed countries has been a controversial and much disputed subject within the field of economics and development studies. Researchers using various models such as the Rostow Development model, Harrod Domar model and the Neoclassical Theory Model, have studied these impacts and have tried to come to a conclusion to this issue. Researchers have also conducted many case studies in order to investigate in depth factors contributing to impacts and whether there are differences due to external factors. The issue has grown in importance over the last decade and this paper attempts to discover whether the impacts are beneficial enough in order to uphold transnational corporation…show more content… Literature Review
In order to examine whether economic development can be accelerated in low developed countries it important to define and identify the characteristics of Economic Development. Economic development is significantly more advanced than economic growth. It is more relevant to measuring improvements in the quality of life in developing nations. Economic development is also concerned with literacy rates, life expectancy, poverty rates and structural changes in the economy.
According to Todaro & Smith 2011, Economic Development can be specified into three objectives of development. The first is ‘Sustaining Goods and Services’; this objective is the increase in supply of goods and services, which also widens the distribution of basic needs such as food shelter, health and protection. The second is ‘An Increase in Income’; this objective is to increase the standard of living, jobs, improved education and better attention to cultural values. All these factors enhance material well being, individual and national self-esteem. The third and final is the ‘Freedom to Make Economic and Social Choices’, this objective is to increase the range of economic opportunities available to a society.
There has been Dispute on the most reliable way to measure Economic development. In this paper the measurement of Economic Development is the Human Development index (HDI), which is