LATEST PUBLICATIONS
PN 2021-09
Gender Perspectives in E-livelihood and E-entrepreneurship
PN 2021-08
Promoting a More Innovative and Inclusive Society through ICT Development
SEARCA MGB 2021 2
Seed Guidebook: Scaling and Expanding for Effective Development the Experiences and Learning from the SEARCA Project ISARD
SEARCA RPCL 2021 6
Microbes for Sustainable Agriculture: Isolation and Identification of Beneficial Soil- and Plant-Associated Microorganisms

LATEST AV MATERIALS
PIDS WB 2021-0903
Annual Public Policy Conference Webinar 2: Ethical Business
PIDS WB 2021-0902
Opening Program and Annual Public Policy Conference Webinar 1: Resetting Capitalism
PIDS WB 2021-0901
19th Development Policy Research Month Kick-Off Forum
PIDS WB 2021-0702
Local Governments' PDP and SDG Localization Efforts as Contribution to National Development
Publication Detail
Asian Institute of Management Working Paper No. 13-006: The Impact of FDI on Child Labor: Insights from an Empirical Analysis of Sectoral FDI Data and Case Studies

Not all FDI are alike as far as their impact on various dimensions of human development is concerned. This paper focuses, in particular, on child labor and it undertakes a cross-country empirical analysis of this issue, using data on 100 countries spanning the period 1990-2009. Unlike earlier studies that focus mostly on total FDI, we also utilized data on disaggregated FDI, covering main economic sectors of interest such as agriculture, mining, manufacturing, services, and finance. The empirical results suggest that different economic sectors generate varied effects on child labor. For instance, FDI in agriculture in Europe and Central Asia tends to exacerbate child labor, whereas FDI in manufacturing in South and East Asia and FDI in mining in Latin America appears negatively linked to child labor. Furthermore, signing onto the UN Convention on the Rights of the Child had a positive association with child labor, which runs counter to the intended effect! One possible explanation is that stronger anti-child labor laws could lead to multiple equilibria in labor markets, including the possibility of increasing child labor in certain sectors. Selected case studies help clarify the possible reasons behind this varied FDI impact on child labor, emphasizing among other factors supply chain management and the critical importance of policy implementation and coordination with the private sector.

AIM Rizalino S. Navarro Policy Center for Competitiveness
Authors Keywords
Mendoza, Ronald U.; Doytch, Nadia K.; Thelen, Nina; child labor; FDI; income and substitution effect; UN Convention on the Rights of the Child;
Download PDF Number of Downloads
Published in 2013 and available in the Asian Institute of Management Research and Publications website or Downloaded 427 times since January 13, 2014
×
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. Thank you.


To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display)
Age:
Gender:
If Prefer to self-describe, please specify:
Level of Education:
Occupation:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.