Abstract/Summary

The capacity of Multinational Enterprises (MNEs) to generate employment and upgrade the quality of the host country’s human capital is arguably it’s most immediate and significant contribution to economic growth, a key objective of an MNE-assisted development agenda. However, whether by direct or indirect action, or by inaction, MNEs can have both a positive and a negative effect on within-country inequality, not least because they play an outsized and growing role in most economies. Much is unclear about the mechanisms underlying the link between MNE activity and inequality. We believe it is necessary - for both MNEs and policymakers- to have a more nuanced understanding of how, and under what circumstances, the presence of MNEs affects inequality in host economies. We therefore highlight some key issues and avenues for future research.