In recent years a great deal of attention has been directed to the application of multivariate statistical methods to the assessment of dependency approaches to North-South relations. This article attempts to contribute to the debate with an effort at specificity. It concentrates closely upon a single mode of North-South interaction, private direct foreign investment, and explores the consequences of investment holdings differentiated into three economic sectors—mining, agriculture and manufacturing—on income distribution and social policy in 68 Third World countries. It is found that hypotheses relating extensive foreign investment holdings to inequitable income distribution and social marginality are consistently borne out (although the effects vary somewhat by economic sector) but that hypotheses relating foreign investment to inequitable taxation and social welfare policies are not.
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