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Fairness, NGO Activism and the Welfare of Less Developed Countries

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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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Bibliographic Info

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

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Date of creation: 01 Jun 2003
Date of revision: 09 Dec 2007
Publication status: Published as “Fairness, Consumer Consciousness and the Welfare of Less Developed Countries” in Global Economy Journal, 8 (1) (2008), Article 7.
Handle: RePEc:sef:csefwp:101

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Cited by:
  1. Sylvaine Poret & Claire Chambolle, 2007. "Fair Trade: In or Out the Market?," Working Papers hal-00243062, HAL.

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