Fairness, NGO Activism and the Welfare of Less Developed Countries
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.
|Date of creation:||01 Jun 2003|
|Date of revision:||09 Dec 2007|
|Publication status:||Published as “Fairness, Consumer Consciousness and the Welfare of Less Developed Countries” in Global Economy Journal, 8 (1) (2008), Article 7.|
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