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The impact of core labour standards on exports

  • Hasnat, Baban
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    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.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0969593102000379
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    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 11 (2002)
    Issue (Month): 5 (October)
    Pages: 563-575

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    Handle: RePEc:eee:iburev:v:11:y:2002:i:5:p:563-575
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    1. Baban Hasnat, 1996. "Child Labour in American Imports," Applied Economics Letters, Taylor & Francis Journals, vol. 3(9), pages 573-576.
    2. 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.
    3. Goldstein, Morris & Khan, Mohsin S, 1978. "The Supply and Demand for Exports: A Simultaneous Approach," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 275-86, May.
    4. Drusilla K. Brown, 2000. "International Trade and Core Labor Standards: A Survey of the Recent Literature," Discussion Papers Series, Department of Economics, Tufts University 0005, Department of Economics, Tufts University.
    5. Catherine Carey, 1997. "U.S. Import Supply Behavior: Evidence from the 1980s," Eastern Economic Journal, Eastern Economic Association, vol. 23(2), pages 139-149, Spring.
    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 141-59, May.
    7. Cees van Beers, 1998. "Labour Standards and Trade Flows of OECD Countries," The World Economy, Wiley Blackwell, vol. 21(1), pages 57-73, 01.
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