Ietto-Gillies, G. (2020) Digitalization and the transnational corporations. Working Paper. Birkbeck, University of London, London, UK.
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Abstract
Starting from an analysis of the impact of digitalization on transnationality, the paper examines the impact of the rise of ICT and digital TNCs for theory and policy. Conclusions include the following. (1) The rise of Tech - ICT and digital - TNCs makes it compelling that economists devote more time to the incorporation of the study of TNCs within the body of economics. (2) The theory of the TNC in itself may need reconsideration on the basis of changes in the real economy in terms of the growing relevance of digital TNCs. They pose theory challenges in that the foreign assets component of international production is becoming less relevant while liquid assets are increasing. We need to rethink our conceptualization and definition of TNCs to fit in with the growing digitalization of the economy. (3) There are also great policy challenges deriving from the differences in regulatory regimes between different nation-states and characteristics of these TNCs. These challenges allow TNCs in general - and the digital TNCs to an even higher extent – to: minimize their tax liability; avoid responsibility for their workforce; affect the democratic processes across countries.
Metadata
| Item Type: | Monograph (Working Paper) |
|---|---|
| Additional Information: | CIMR Working Paper no.45, ISSN: 2052-062X |
| Keyword(s) / Subject(s): | Transnational companies, digital companies, digitalization, multinationality indices, labour, industries, foreign assets, taxation |
| School: | Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School |
| Research Centres and Institutes: | Innovation Management Research, Birkbeck Centre for |
| Depositing User: | Administrator |
| Date Deposited: | 21 Apr 2021 09:55 |
| Last Modified: | 02 Aug 2023 18:09 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/43960 |
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