Resource title

Core labour standards and FDI: friends or foes?: The case of child labour

Resource image

image for OpenScout resource :: Core labour standards and FDI: friends or foes?: The case of child labour

Resource description

We test the often-cited hypothesis that high levels of child labour attract foreign investors. Using panel data we show the overall effect, which child labour has on foreign direct investment (FDI), to be a (small) negative one. We find strong evidence for the theoretical prediction that child labour deters FDI by slowing down economic development. Weaker evidence is provided for our theoretical prediction that child labour can discourage FDI via its impact on the availability of a skilled labour force in an economy. The data do not indicate that high levels of child labour drive down the factor share of labour, thereby increasing the attractiveness of an economy for foreign investors.

Resource author

Sebastian Braun

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25097

Resource license

Adapt according to the presented license agreement and reference the original author.