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Fairness, NGO Activism and the Welfare of Less Developed Countries

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Author Info
Giovanni Immordino () (CSEF, Università di Salerno)

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Abstract

In a world where some consumers are not self-interested and the action of non-governmental organizations (NGOs) reveals information, the price of a good produced by a multinational enterprise and the latter's relocation and production decisions depend on labor standards. We study the effect of an increase in NGO activism on labor standards and welfare in less developed countries (LDC). An increase in NGO activism improves labor practices unless consumers like inequity. A priori, activism could either increase or decrease LDC welfare. We give parameter restrictions that determine which way it moves.

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Publisher Info
Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Salerno, Italy in its series CSEF Working Papers with number 101.

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Date of creation: 01 Jun 2003
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Handle: RePEc:sef:csefwp:101

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Find related papers by JEL classification:
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
J80 - Labor and Demographic Economics - - Labor Standards - - - General
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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  7. Giovanni Graziani, 1998. "Globalization of Production in the Textile and Clothing Industries: The Case of Italian Foreign Direct Investment and Outward Processing in Eastern Europe," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series 1032, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley. [Downloadable!]
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  9. Camerer, Colin F & Thaler, Richard H, 1995. "Ultimatums, Dictators and Manners," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 209-19, Spring. [Downloadable!] (restricted)
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  11. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-41, September. [Downloadable!] (restricted)
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  14. repec:att:wimass:19961 is not listed on IDEAS
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