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The impact of core labour standards on exports

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  • Hasnat, Baban

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.

Suggested Citation

  • Hasnat, Baban, 2002. "The impact of core labour standards on exports," International Business Review, Elsevier, vol. 11(5), pages 563-575, October.
    • Handle: RePEc:eee:iburev:v:11:y:2002:i:5:p:563-575
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    References listed on IDEAS

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    1. Nick van Hear, 1982. "Child Labour and the Development of Capitalist Agriculture in Ghana," Development and Change, International Institute of Social Studies, vol. 13(4), pages 499-514, October.
    2. Morris Goldstein & Mohsin S. Khan, 2017. "The Supply and Demand for Exports: A Simultaneous Approach," World Scientific Book Chapters, in: TRADE CURRENCIES AND FINANCE, chapter 2, pages 83-104, World Scientific Publishing Co. Pte. Ltd..
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    6. 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 141-159, May.
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    8. Cees Van Beers, 1998. "Labour Standards and Trade Flows of OECD Countries," The World Economy, Wiley Blackwell, vol. 21(1), pages 57-73, January.
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    Cited by:

    1. Hayakawa, Kazunobu, 2017. "Effects of labor standard on trade : evidence from U.S. imports of coffee and tobacco," IDE Discussion Papers 669, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Singh, Deeksha A., 2009. "Export performance of emerging market firms," International Business Review, Elsevier, vol. 18(4), pages 321-330, August.
    3. Christopher Candland, 2009. "Core labour standards under the Administration of George W. Bush," International Labour Review, International Labour Organization, vol. 148(1-2), pages 169-181, June.
    4. Pham Hoang Linh & Nguyen Khanh Doanh & Nguyen Ngoc Quynh, 2019. "Determinants of Vietnam`s potential trade: a case study of agricultural exports to the European Union," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 9(1), pages 33-46, June.

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