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Effects of labor standard on trade : evidence from U.S. imports of coffee and tobacco

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  • Hayakawa, Kazunobu

Abstract

This paper empirically investigates whether countries included in the “List of Goods Produced by Child Labor or Forced Labor” by the U.S. government reduce their exports to the U.S. To this end, we estimated gravity equations for trade in coffee and tobacco during 2005–2014. In contrast to previous studies in this literature, our paper controls for a “supply-side” mechanism (e.g., change in the amount of unskilled labor) by introducing exporter-year fixed effects. Furthermore, we controlled for time-invariant country-pair specific elements such as U.S. consumers’ aversion to products from a specific country. Our results yielded a robust result that countries in the list do not change the magnitude of their exports to the U.S. Several interpretations are presented.

Suggested Citation

  • Hayakawa, Kazunobu, 2017. "Effects of labor standard on trade : evidence from U.S. imports of coffee and tobacco," IDE Discussion Papers 669, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper669
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    International trade; Child labor; Forced labor; Coffee; Tobacco; Gravity; CSR; U.S.;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

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