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Trade and Labor Standards

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  • Drusilla Brown
  • Alan Deardorff
  • Robert Stern

Abstract

The purpose of our paper is to explore the different views of the issues of international labor standards and to explore the available options for addressing these issues. We conclude that: (1) there is no convincing case on theoretical or empirical grounds for incorporating labor standards into the WTO and into U.S. trade agreements; (2) the surest way to improve labor standards is for the United States and other industrialized countries to maintain open markets and to encourage the economic growth of their developing country trading partners; and (3) steps should be taken to support the activities of the International Labour Organization (ILO) to provide inducements and technical assistance to help developing countries raise their labor standards. Copyright Kluwer Academic Publishers 1998

Suggested Citation

  • Drusilla Brown & Alan Deardorff & Robert Stern, 1998. "Trade and Labor Standards," Open Economies Review, Springer, vol. 9(2), pages 171-194, April.
    • Handle: RePEc:kap:openec:v:9:y:1998:i:2:p:171-194
    DOI: 10.1023/A:1008268419257
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    References listed on IDEAS

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    1. Maskus, Keith E. & Rutherford, Thomas J. & Selby, Steven, 1995. "Implications of changes in labor standards: A computational analysis for Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 6(2), pages 171-188.
    2. Kym Anderson, 1997. "Social Policy Dimensions of Economic Integration: Environmental and Labor Standards," NBER Chapters, in: Regionalism versus Multilateral Trade Arrangements, pages 57-90, National Bureau of Economic Research, Inc.
    3. Mr. Stephen S. Golub, 1997. "International Labor Standards and International Trade," IMF Working Papers 1997/037, International Monetary Fund.
    4. André Sapir, 1995. "The Interaction Between Labour Standards and International Trade Policy," The World Economy, Wiley Blackwell, vol. 18(6), pages 791-803, November.
    5. Brown, D.K. & Dearorff, A.V. & Stern, R.M., 1993. "International Labor Standards and Trade: A Theoretical Analysis," Working Papers 333, Research Seminar in International Economics, University of Michigan.
    6. Squire, Lyn & Suthiwart-Narueput, Sethaput, 1997. "The Impact of Labor Market Regulations," The World Bank Economic Review, World Bank, vol. 11(1), pages 119-143, January.
    7. Jagdish Bhagwati, 1995. "Trade Liberalisation and ‘Fair Trade’ Demands: Addressing the Environmental and Labour Standards Issues," The World Economy, Wiley Blackwell, vol. 18(6), pages 745-759, November.
    8. André Sapir, 1996. "The harmonization of social policies: lessons from European integration," ULB Institutional Repository 2013/8164, ULB -- Universite Libre de Bruxelles.
    9. Maskus, Keith E., 1997. "Should core labor standards be imposed through international trade policy?," Policy Research Working Paper Series 1817, The World Bank.
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    Citations

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    Cited by:

    1. James Heintz, 2011. "Global Labor Standards: Their Impact and Implementation," Chapters, in: Jonathan Michie (ed.), The Handbook of Globalisation, Second Edition, chapter 13, Edward Elgar Publishing.
    2. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "Pros and Cons of Linking Trade and Labor Standards," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 16, pages 599-621, World Scientific Publishing Co. Pte. Ltd..
    3. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 17, pages 623-687, World Scientific Publishing Co. Pte. Ltd..
    4. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "U.S. Trade and Other Policy Options and Programs to Deter Foreign Exploitation of Child Labor," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 18, pages 689-743, World Scientific Publishing Co. Pte. Ltd..
    5. Jean-Marie Cardebat & Alexandru Dimitrescu, 2011. "Social Responsibility of the countries and their international trade : A gravitational approach," Larefi Working Papers 201102, Larefi, Université Bordeaux 4.
    6. Bagwell,K. & Staiger,R.W., 1998. "The simple economics of labor standards and the Gatt," Working papers 9, Wisconsin Madison - Social Systems.
    7. Busse, Matthias, 2002. "Do Transnational Corporations Care About Labour Standards?," Discussion Paper Series 26298, Hamburg Institute of International Economics.
    8. Busse, Matthias, 2002. "Do Labor Standards Affect Comparative Advantage in Developing Countries?," World Development, Elsevier, vol. 30(11), pages 1921-1932, November.
    9. Drusilla K. Brown, 1998. "A Transactions Cost Politics Analysis of International Child Labor Standards," Discussion Papers Series, Department of Economics, Tufts University 9819, Department of Economics, Tufts University.
    10. Bernhard Boockmann, 2003. "Mixed Motives: An Empirical Analysis of ILO Roll-Call Voting," Constitutional Political Economy, Springer, vol. 14(4), pages 263-285, December.
    11. Alireza Naghavi, 2007. "Asymmetric Labor Markets, Southern Wages and the Location of Firms," Review of Development Economics, Wiley Blackwell, vol. 11(3), pages 463-481, August.
    12. Grethe, Harald, 2007. "High animal welfare standards in the EU and international trade - How to prevent potential `low animal welfare havens'?," Food Policy, Elsevier, vol. 32(3), pages 315-333, June.
    13. Boockmann, Bernhard, 2002. "Mixed motives: an empirical analysis of ILO roll-call votes," ZEW Discussion Papers 02-40, ZEW - Leibniz Centre for European Economic Research.
    14. Hefeker, Carsten & Wunner, Norbert, 2002. "The producer interest in foreign labor standards," European Journal of Political Economy, Elsevier, vol. 18(3), pages 429-447, September.
    15. J. M. Cardebat & Alexandru Dumitrescu, 2013. "Social responsibility of countries and their international trade: A gravitational approach," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 22(2), pages 234-252, March.
    16. Alireza Naghavi, 2003. "Asymmetric labor markets and the location of firms: Are multinationals attracted to weak labor standards?," Working Papers 200323, School of Economics, University College Dublin.
    17. Gabriel Eweje, 2009. "Labour Relations and Ethical Dilemmas of Extractive MNEs in Nigeria, South Africa and Zambia: 1950–2000," Journal of Business Ethics, Springer, vol. 86(2), pages 207-223, March.
    18. Darlene C. Chisholm & George Norman, 2002. "Spatial Competition and Demand: An Application to Motion Pictures," Discussion Papers Series, Department of Economics, Tufts University 0216, Department of Economics, Tufts University.
    19. Robert M. Stern, 2003. "Labor Standards and Trade Agreements," Working Papers 496, Research Seminar in International Economics, University of Michigan.
    20. Bernhard Boockmann & Roland Vaubel, 2009. "The Theory of Raising Rivals’ Costs and Evidence from the International Labour Organisation," The World Economy, Wiley Blackwell, vol. 32(6), pages 862-887, June.

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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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