Arbeitspapier
Rational Asymmetric Development: Transfer Pricing and Sub-Saharan Africa's Extreme Poverty Tragedy
A recent publication by the World Bank on Millennium Development Goals (MDGs) has established that extreme poverty has been decreasing in all regions of the world with the exception of sub-Saharan Africa (SSA), in spite of over two decades of growth resurgence. This chapter explores the role of transfer pricing in SSA's extreme poverty tragedy. The analytical structure entails: (i) emphasis of rational asymmetric development as the dark side of transfer pricing, (ii) evidence that the recent growth resurgence in African countries has been driven substantially by resource-rich countries which are experiencing high levels of exclusive growth and extreme poverty, (iii) the practice of transfer pricing by multinationals operating in resource-rich countries of SSA and (iv) a Zambian case study of extreme poverty and transfer pricing schemes by Glencore in the copper industry. While transfer pricing is contributing to diminishing African growth, available evidence shows that the component growth that is not captured by transfer pricing does not trickle down to the poor because the African elite is also captured by practices of rational asymmetric development. Policy implications for the fight against extreme poverty are discussed.
- Language
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Englisch
- Bibliographic citation
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Series: AGDI Working Paper ; No. WP/15/017
- Classification
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Wirtschaft
International Factor Movements and International Business: General
International Relations, National Security, and International Political Economy: General
Taxation, Subsidies, and Revenue: General
Macroeconomic Analyses of Economic Development
Economywide Country Studies: Africa
- Subject
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Transfer pricing
Asymmetric development
Extreme poverty: SSA
- Event
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Geistige Schöpfung
- (who)
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Asongu, Simplice A.
- Event
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Veröffentlichung
- (who)
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African Governance and Development Institute (AGDI)
- (where)
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Yaoundé
- (when)
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2015
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Asongu, Simplice A.
- African Governance and Development Institute (AGDI)
Time of origin
- 2015
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