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The transmission of socially responsible behaviour through international trade

Author

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  • Carol Newman
  • John Rand
  • Finn Tarp
  • Neda Trifkovic

Abstract

We investigate the relationship between the corporate social responsibility practices of local domestic firms and their engagement with foreign markets using four waves of panel data on a sample of more than 4,500 manufacturing firms from Viet Nam. We develop a measure of corporate social responsibility that combines compliance with labour standards, management commitment to corporate social responsibility, and community activities. We find a strong relationship between engagement in international markets and the corporate social responsibility activities of firms, with the exception of trade with China. Results suggest that firms in exportintensive sectors engage in more corporate social responsibility activities, while those in sectors with higher levels of imports engage in less.

Suggested Citation

  • Carol Newman & John Rand & Finn Tarp & Neda Trifkovic, 2016. "The transmission of socially responsible behaviour through international trade," WIDER Working Paper Series 068, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp2016-068
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    References listed on IDEAS

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    Cited by:

    1. Carol Newman & John Rand & Finn Tarp & Neda Trifkovic, 2016. "Corporate social responsibility in a competitive business environment," WIDER Working Paper Series 007, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    corporate social responsibility; trade; spillovers; Viet Nam;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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