The effects of globalization on child labor in developing countries
AbstractThis paper inquires the effects of globalization on child labor in developing countries via cross-country analysis by decomposing globalization to its components; foreign direct investment (FDI) and trade. The findings reveal that the relationship between the child labor supply and gross domestic product per capita (PCGDP) can be expressed as a U shape. The study indicates that the child labor increases in the developing countries whose PCGDP levels are above $7500 since the net effect of globalization is positive for the positive substitution effect is bigger than the negative income effect. Data have been collected from UNICEF and World Bank.
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Bibliographic InfoArticle provided by Prague Development Center in its journal Business and Economic Horizons (BEH).
Volume (Year): 2 (2010)
Issue (Month): 2 (July)
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Child labor; globalization; trade; FDI; developing countries.;
Find related papers by JEL classification:
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other
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- Swaminathan, Madhura, 1998. "Economic growth and the persistence of child labor: Evidence from an Indian city," World Development, Elsevier, vol. 26(8), pages 1513-1528, August.
- Krisztina Kis-Katos, 2007. "Does globalization reduce child labor?," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 16(1), pages 71-92.
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