The effects of globalization on child labor in developing countries

Ozcan Dagdemir () and Hakan Acaroglu ()
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Ozcan Dagdemir: Department of Economics Eskisehir Osmangazi University, Turkey.
Hakan Acaroglu: Department of Economics Eskisehir Osmangazi University, Turkey.

Business and Economic Horizons (BEH), 2010, vol. 2, issue 2, pages 37-47

Abstract: This paper inquires the effects of globalization on child labor in developing countries via cross-country analysis by decomposing globalization to its components; foreign direct investment (FDI) and trade. The findings reveal that the relationship between the child labor supply and gross domestic product per capita (PCGDP) can be expressed as a U shape. The study indicates that the child labor increases in the developing countries whose PCGDP levels are above $7500 since the net effect of globalization is positive for the positive substitution effect is bigger than the negative income effect. Data have been collected from UNICEF and World Bank.

Keywords: Child labor; globalization; trade; FDI; developing countries. (search for similar items in EconPapers)
JEL-codes: C31 F14 F15 F16 J49 (search for similar items in EconPapers)
Date: 2010
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Persistent link: http://EconPapers.repec.org/RePEc:pdc:jrnbeh:v:2:y:2010:i:2:p:37-47

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