“Return of Dependency” or “A New Hope”?: East-South Investment and Interdependent Development in Colombia

This dissertation develops an economic sociology of “post-dependent development” by examining the dynamics of “East–South” investment in Latin America, with a focus on Chinese multinational corporations (MNCs) in Colombia. Drawing on dependency theory and Peter Evans’ (1979) “dependent development”, it explores whether the rise of Chinese MNCs “going South” continues established dependency patterns or enables more equitable, “negotiated” development. Prevailing scholarship conceptualizes China merely as a new “core” country perpetuating North–South inequality. Challenging these narratives, this study centers on China’s own developmental challenges and distinctive state–firm relations to understand the diverse, evolving practices of Chinese MNCs on the ground. Methodologically, combining grounded theory and process tracing, and based on 64 interviews, ethnographic observations, and document analysis, it compares Chinese and U.S.-based MNCs in Colombia. Findings show that Chinese MNCs differ from their U.S.-based competitors in substantial ways. First, they enhance new dynamics of competition by investing in key sectors such as infrastructure, historically neglected by Northern actors. Second, although Chinese-led MNCs barely differ from their Northern counterparts in their attempts to circumvent legal loopholes when entering new markets, they demonstrate greater adaptability to local demands – particularly those of labor and local communities – over time, driven by state regulations and diplomatic priorities at home. The study concludes that, under strong democratic oversight, East–South engagement can support more negotiated development, though risks of elite capture persist where democratic institutions remain weak. On this basis, the dissertation offers nuanced insights into how “East–South” investment may indeed contribute to the vision of “post-dependent development” by complicating established paradigms of dependency.