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Social responsibility of countries and their international trade: A gravitational approach

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  • J. M. Cardebat
  • Alexandru Dumitrescu

Abstract

This article presents an econometric study based on a gravitational model estimation of the link between the prevailing social conditions in a country and its exports. It is based on an original indicator of social conditions: the Responsible Competitiveness Index (RCI) launched in 2007 by AccountAbility , the organisation that introduced the international AA1000 Standard. The regressions initially show a positive connection between the social responsibility of the countries and their exports. It is not a linear connection but shows a bell-shaped curve stronger in countries with lower levels of social responsibility (Southern countries): it can be negative in countries with high levels of social responsibility (Northern countries).

Suggested Citation

  • 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.
  • Handle: RePEc:taf:jitecd:v:22:y:2013:i:2:p:234-252
    DOI: 10.1080/09638199.2010.545954
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    References listed on IDEAS

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    1. Vivek H. Dehejia & Yiagadeesen Samy, 2007. "Trade and Labor Standards: A Review of the Theory and New Empirical Evidence," Carleton Economic Papers 07-12, Carleton University, Department of Economics.
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    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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