Advanced Search
MyIDEAS: Login to save this paper or follow this series

Core labour standards and exports

Contents:

Author Info

  • Siroën, Jean-Marc

Abstract

Core labour standards defined by the ILO in 1998 are universal, but applied very differently across countries. Compliance is much higher in high income countries. However, the causality between improved labour standards and economic growth remains a controversial issue. Export-led growth strategies might encourage developing countries to curb the process of standards improvement. In this way, they can raise the volume of their unskilled labour endowments (child and/or forced labour) in order to strengthen their comparative advantage over compliant countries and pursue "social dumping" strategies, which aim more directly at increasing competitiveness. We use a gravity model to assess the trade impact of curbing the level of compliance with core labour standards, distinguishing the effects on bilateral trade (geographical specialization) from the multilateral effects on all exports and imports. We show that, other things being equal, countries that meet the labour standards tend to trade more with each other, while non-compliant countries tend to trade more with compliant countries. These effects are identified mainly with respect to child labour and freedom of association. All other things being equal, countries that meet the labour standards tend to be less open than non-compliant countries, but differently depending on the standards, with a non-linear relationship for some of them. Less compliant countries, frequently the poorest ones, may simultaneously step up their trade and labour standards. For median countries, mainly the emerging countries, the level of compliance with labour standards is “optimal” from a mercantilist point of view. For the most compliant countries, the developed ones, their strict compliance with labour standards implies a trade shortfall.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://basepub.dauphine.fr/xmlui/bitstream/123456789/10660/3/DT%202012-18%20Siroen.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/10660.

as in new window
Length:
Date of creation: Nov 2012
Date of revision:
Publication status: Published in DIAL Document de travail, 2012
Handle: RePEc:dau:papers:123456789/10660

Contact details of provider:
Web page: http://www.dauphine.fr/en/welcome.html
More information through EDIRC

Related research

Keywords: Exportations; Commerce international; Normes de travail; OIT; modèles de gravité; Exports; International Trade; Labour Standards; ILO; Gravity Models;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Elias Dinopoulos & Laixun Zhao, 2006. "Child Labor and Globalization," Discussion Paper Series, Research Institute for Economics & Business Administration, Kobe University 198, Research Institute for Economics & Business Administration, Kobe University.
  2. Douglas A. Irwin & Marko Tervio, 2000. "Does Trade Raise Income? Evidence from the Twentieth Century," NBER Working Papers 7745, National Bureau of Economic Research, Inc.
  3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, Elsevier, vol. 22(1), pages 3-42, July.
  4. Kaushik Basu, 1999. "Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1083-1119, September.
  5. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 108(447), pages 383-98, March.
  6. Edwards, Sebastian, 1992. "Trade orientation, distortions and growth in developing countries," Journal of Development Economics, Elsevier, Elsevier, vol. 39(1), pages 31-57, July.
  7. Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 108(3), pages 653-79, August.
  8. Maskus, Keith E., 1997. "Should core labor standards be imposed through international trade policy?," Policy Research Working Paper Series 1817, The World Bank.
  9. Edmonds, Eric V & Pavcnik, Nina, 2004. "International Trade and Child Labour: Cross-Country Evidence," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4309, C.E.P.R. Discussion Papers.
  10. Chantal Thomas, 2002. "Trade-Related Labor and Environment Agreements?," Journal of International Economic Law, Oxford University Press, Oxford University Press, vol. 5(4), pages 791-819, December.
  11. Romer, Paul M., 1990. "Human capital and growth: Theory and evidence," Carnegie-Rochester Conference Series on Public Policy, Elsevier, Elsevier, vol. 32(1), pages 251-286, January.
  12. Galli, Rossana & Kucera, David, 2004. "Labor Standards and Informal Employment in Latin America," World Development, Elsevier, Elsevier, vol. 32(5), pages 809-828, May.
  13. Baldwin, Richard & Taglioni, Daria, 2006. "Gravity for Dummies and Dummies for Gravity Equations," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5850, C.E.P.R. Discussion Papers.
  14. David KUCERA, 2002. "Core labour standards and foreign direct investment," International Labour Review, International Labour Organization, International Labour Organization, vol. 141(1-2), pages 31-69, 03.
  15. Barro, Robert J, 1996. " Democracy and Growth," Journal of Economic Growth, Springer, Springer, vol. 1(1), pages 1-27, March.
  16. Basu, Kaushik, 1999. "The intriguing relation between adult minimum wage and child labor," Policy Research Working Paper Series 2173, The World Bank.
  17. Romain Wacziarg & Karen Horn Welch, 2003. "Trade Liberalization and Growth: New Evidence," NBER Working Papers 10152, National Bureau of Economic Research, Inc.
  18. Matthias BUSSE & Sebastian BRAUN, 2003. "Trade and investment effects of forced labour: An empirical assessment," International Labour Review, International Labour Organization, International Labour Organization, vol. 142(1), pages 49-71, 03.
  19. Chau, Nancy H & Kanbur, Ravi, 2001. "The Adoption of Labour Standards Conventions: Who, When and Why?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2904, C.E.P.R. Discussion Papers.
  20. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, American Economic Association, vol. 89(3), pages 379-399, June.
  21. Rémi Bazillier, 2004. "Core labour standards and economic growth," Cahiers de la Maison des Sciences Economiques, Université Panthéon-Sorbonne (Paris 1) bla04088, Université Panthéon-Sorbonne (Paris 1).
  22. Clotilde Granger, 2005. "Normes de travail fondamentales et echanges sud-nord," Economie Internationale, CEPII research center, CEPII research center, issue 101, pages 47-62.
  23. Cees van Beers, 1998. "Labour Standards and Trade Flows of OECD Countries," The World Economy, Wiley Blackwell, vol. 21(1), pages 57-73, 01.
  24. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
  25. C. Shelburne, Robert, 2004. "Wage Differentials, Monopsony Labor Markets, and the Trade-Labor Standards Debate," Journal of Economic Integration, Center for Economic Integration, Sejong University, Center for Economic Integration, Sejong University, vol. 19, pages 131-161.
  26. Toke Aidt & Zafiris Tzannatos, 2002. "Unions and Collective Bargaining : Economic Effects in a Global Environment," World Bank Publications, The World Bank, number 15241, August.
  27. 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.
  28. Alberto F. Ades & Edward L. Glaeser, 1994. "Evidence on Growth, Increasing Returns and the Extent of the Market," NBER Working Papers 4714, National Bureau of Economic Research, Inc.
  29. Martin, Will & Maskus, Keith E, 2001. "Core Labor Standards and Competitiveness: Implications for Global Trade Policy," Review of International Economics, Wiley Blackwell, vol. 9(2), pages 317-28, May.
  30. Busse, Matthias, 2002. "Do Labor Standards Affect Comparative Advantage in Developing Countries?," World Development, Elsevier, Elsevier, vol. 30(11), pages 1921-1932, November.
  31. Siroën, Jean-Marc & Granger, Clotilde, 2005. "La clause sociale dans les traités commerciaux," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/252, Paris Dauphine University.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:dau:papers:123456789/10660. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexandre Faure).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.