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The effects of globalization on child labor in developing countries

Author

Listed:
  • Ozcan Dagdemir

    (Department of Economics Eskisehir Osmangazi University, Turkey.)

  • Hakan Acaroglu

    (Department of Economics Eskisehir Osmangazi University, Turkey.)

Abstract

This paper inquires the effects of globalization on child labor in developing countries via cross-country analysis by decomposing globalization to its components; foreign direct investment (FDI) and trade. The findings reveal that the relationship between the child labor supply and gross domestic product per capita (PCGDP) can be expressed as a U shape. The study indicates that the child labor increases in the developing countries whose PCGDP levels are above $7500 since the net effect of globalization is positive for the positive substitution effect is bigger than the negative income effect. Data have been collected from UNICEF and World Bank.

Suggested Citation

  • Ozcan Dagdemir & Hakan Acaroglu, 2010. "The effects of globalization on child labor in developing countries," Business and Economic Horizons (BEH), Prague Development Center, vol. 2(2), pages 37-47, July.
    • Handle: RePEc:pdc:jrnbeh:v:2:y:2010:i:2:p:37-47
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    References listed on IDEAS

    as
    1. Krisztina Kis-Katos, 2007. "Does globalization reduce child labor?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 16(1), pages 71-92.
    2. Swaminathan, Madhura, 1998. "Economic growth and the persistence of child labor: Evidence from an Indian city," World Development, Elsevier, vol. 26(8), pages 1513-1528, August.
    3. Alan B. Krueger, 1996. "Observations on International Labor Standards and Trade," NBER Working Papers 5632, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Aïssata COULIBALY, 2016. "Revisiting the Relationship between Financial Development and Child Labor in Developing Countries: Do Inequality and Institutions Matter?," Working Papers 201619, CERDI.
    2. Polyxeni Kechagia & Theodore Metaxas, 2023. "Capital Inflows and Working Children in Developing Countries: An Empirical Approach," Sustainability, MDPI, vol. 15(7), pages 1-18, April.
    3. Kechagia, Polyxeni & Metaxas, Theodore, 2020. "FDI, child labor and gender issues in Sub – Saharan Africa: an empirical approach," MPRA Paper 104311, University Library of Munich, Germany.
    4. Mustafa, Ghulam & Rizov, Marian & Kernohan, David, 2017. "Growth, human development, and trade: The Asian experience," Economic Modelling, Elsevier, vol. 61(C), pages 93-101.
    5. Soo-Haeng Cho & Xin Fang & Sridhar Tayur & Ying Xu, 2019. "Combating Child Labor: Incentives and Information Disclosure in Global Supply Chains," Manufacturing & Service Operations Management, INFORMS, vol. 21(3), pages 692-711, July.

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    More about this item

    Keywords

    Child labor; globalization; trade; FDI; developing countries.;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J49 - Labor and Demographic Economics - - Particular Labor Markets - - - Other

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