The effect of FDI on child labor

Ronald Davies () and Annie Voy

Journal of Development Economics, 2009, vol. 88, issue 1, pages 59-66

Abstract: This paper examines the effect of FDI on child labor. Using 1995 data for 145 countries, we find that, contrary to common fears, FDI is negatively correlated with child labor. This effect disappears when controlling for per capita income. After doing so, we find no robust effect of either FDI or international trade on child labor. This result is robust to corrections for the endogeneity of FDI, trade, and income. Furthermore, this result is confirmed using data from earlier years. This suggests that the impact of FDI and trade on child labor, if any, is the increases in income they generate.

Keywords: Child; labor; Foreign; direct; investment; International; trade (search for similar items in EconPapers)
Date: 2009

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Related works:
Working Paper: The Effect of FDI on Child Labor (2007)
Working Paper: The Effect of FDI on Child Labor (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:eee:deveco:v:88:y:2009:i:1:p:59-66

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