O efeito das empresas multinacionais e do ambiente institucional no desenvolvimento sustentável na América latina

Abstract

Multinational enterprises (MNEs), through foreign direct investment (FDI), can generate positive or negative impacts in various countries, resulting from externalities arising from their production activities. From the perspective of the Institutional and Legitimacy Theories, the institutional context plays a key role in guiding the strategic actions of MNEs, such as the publication of sustainability reports, aiming to achieve legitimacy and social acceptance. With the adoption of the 17 Sustainable Development Goals (SDGs) by the United Nations (UN), MNEs have been seeking to demonstrate their commitment to better environmental, social, and financial practices. In this context, the overall objective of this research is to investigate the effects of MNEs on sustainable development in least developed economies. Specifically, it aims to: (1) review the literature on the role of MNEs in the sustainable development of emerging economies; (2) examine the role of the regulatory institutional environment in the relationship between FDI and economic, social, and environmental issues in Latin American countries; and (3) analyze the influence of MNEs’ corporate governance and the institutional governance of their home countries on their contribution to sustainable development in Latin America. The focus on Latin America is relevant due to the structural and institutional reforms the countries in the region have undergone in recent decades, as well as their dependence on FDI, which increases their vulnerability and represents a significant obstacle to achieving the SDGs. To address the research objectives, a systematic literature review was conducted, and a quantitative approach was adopted, using dynamic panel data regression models, such as the Random Effects Model and the Generalized Method of Moments (System GMM). The results indicate that MNEs have ambiguous effects on the sustainable development of emerging economies, with the institutional environment of the host country being a crucial factor in determining whether the externalities generated are positive or negative. Regarding the impact of FDI, a significant negative relationship was found between FDI and indicators of economic, environmental, and social sustainability, with the intensity of the effects being more pronounced in countries with more liberal regulations in credit, labor, and business markets. For MNEs operating in Latin America, commitment to sustainable development was negatively impacted by the size of the board of directors, an important characteristic of corporate governance, and by the institutional governance of the home countries. These results indicate the need for reforms that strengthen institutional orientation towards sustainable development in most Latin American countries, whose environmental and social regulations have not kept pace with regulatory reforms aimed at making the business environment more favorable to MNEs. Therefore, it is argued that economic liberalism, combined with unrestricted FDI incentive policies, harms least developed economies. Furthermore, MNEs that are genuinely committed to sustainable development can adopt responsible governance practices, regardless of local institutional failures, complying with socio-environmental requirements in both developed and emerging economies, without exploiting institutional gaps.