Racing To The Bottom Or Climbing To The Top?: Foreign Direct Investment And Labor Rights Violations

Topics:
Foreign Direct Investment
Tags:
Currency & Foreign Exchange,
Finance,
Foreign Direct Investment,
Foreign Direct Investment (FDI),
Investment,
University Of Notre Dame
Source:
University of Notre Dame

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Overview: This paper addresses a key issue in debates regarding economic globalization: to what extent does the internationalization of production, via foreign direct investment, lead to increased abuses of workers in developing countries? Using a new dataset on collective labor rights violations, the relationship between foreign direct investment and labor rights violations is assessed in over ninety developing nations, for 1985-2000. The focus is on the legal rights and actual capacity of workers to organize, strike, and bargain collectively. In cross-sectional time series analyses, little evidence is found that variations in collective labor rights are due to differences in flows or stocks of foreign direct investment, or to trade openness.

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Format: PDF | Size: 331KB | Date: May 2004 | Pages: 46

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