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Fairness, NGO Activism and the Welfare of Less Developed Countries

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Abstract

In a world where some consumers are not self-interested and the action of non-governmental organizations (NGOs) reveals information, the price of a good produced by a multinational enterprise and the latter's relocation and production decisions depend on labor standards. We study the effect of an increase in NGO activism on labor standards and welfare in less developed countries (LDC). An increase in NGO activism improves labor practices unless consumers like inequity. A priori, activism could either increase or decrease LDC welfare. We give parameter restrictions that determine which way it moves.

Suggested Citation

  • Giovanni Immordino, 2003. "Fairness, NGO Activism and the Welfare of Less Developed Countries," CSEF Working Papers 101, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 09 Dec 2007.
  • Handle: RePEc:sef:csefwp:101
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    Cited by:

    1. Sylvaine Poret & Claire Chambolle, 2007. "Fair Trade: In or Out the Market?," Working Papers hal-00243062, HAL.

    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J80 - Labor and Demographic Economics - - Labor Standards - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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