International labour standards and product differentiation

Michela Limardi ()
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Michela Limardi: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique

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Abstract: In the last decades the interaction between labour standards and international trade has assumed new importance. We use an incentive based-approach to assess the efficiency of trade policy instruments and private schemes for the promotion of international labour standards in Southern Firms. We show that trade policy instruments may implement minimum standards. On the other hand, we find that private schemes may overcome minimum standards if and only if there is an exclusive contract between the Multinational Enterprise (MNE) and the Southern firm, due to free riding effect.

Keywords: international trade; labour standards; corporate social responsibility; product differentiation; commerce international; normes de travail; responsabilité sociale de l'entreprise; différentiation des produits (search for similar items in EconPapers)
Date: 2008-11
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