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The impact of core labour standards on exports

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  • Hasnat, Baban
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    Abstract

    Developed countries contend that trade in goods whose production is not in conformity with internationally recognized basic labour standards should be restricted, while developing countries view any attempt to link trade and labour standards as a form of protectionism that intends to end their comparative advantage. This paper provides an empirical examination of the relation between trade and core labour standards. It develops an export supply function and uses OLS techniques to test it for 58 non-OECD countries. It finds that only one core standard, the right to organize and collective bargaining, has a statistically significant negative impact on exports. The results are insensitive to the level of development of the countries included in the study. The main conclusion that emerges is that, ignoring the right to organize and collective bargaining, core labour standards do not play a significant role in trade performance.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0969593102000379
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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 11 (2002)
    Issue (Month): 5 (October)
    Pages: 563-575

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    Handle: RePEc:eee:iburev:v:11:y:2002:i:5:p:563-575

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    Related research

    Keywords: Labour standards Labour standards export Core labour standards export;

    References

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    1. Cees van Beers, 1998. "Labour Standards and Trade Flows of OECD Countries," The World Economy, Wiley Blackwell, vol. 21(1), pages 57-73, 01.
    2. Jai S. Mah, 1997. "Core Labour Standards and Export Performance in Developing Countries," The World Economy, Wiley Blackwell, vol. 20(6), pages 773-785, 09.
    3. Drusilla K. Brown, 2000. "International Trade and Core Labour Standards: A Survey of the Recent Literature," OECD Labour Market and Social Policy Occasional Papers 43, OECD Publishing.
    4. Baban Hasnat, 1996. "Child Labour in American Imports," Applied Economics Letters, Taylor & Francis Journals, vol. 3(9), pages 573-576.
    5. Goldstein, Morris & Khan, Mohsin S, 1978. "The Supply and Demand for Exports: A Simultaneous Approach," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 275-86, May.
    6. Catherine Carey, 1997. "U.S. Import Supply Behavior: Evidence from the 1980s," Eastern Economic Journal, Eastern Economic Association, vol. 23(2), pages 139-149, Spring.
    7. Webster, Allan, 1993. "The Skill and Higher Educational Content of UK Net Exports," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 55(2), pages 141-59, May.
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    Cited by:
    1. Singh, Deeksha A., 2009. "Export performance of emerging market firms," International Business Review, Elsevier, vol. 18(4), pages 321-330, August.

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