Fairness, NGO Activism and the Welfare of Less Developed Countries

Giovanni Immordino

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: In a world where some consumers are not self-interested and the action of non-governmental organizations (NGOs) reveals information, the price of a good produced by a multinational enterprise and the latter's relocation and production decisions depend on labor standards. We study the effect of an increase in NGO activism on labor standards and welfare in less developed countries (LDC). An increase in NGO activism improves labor practices unless consumers like inequity. A priori, activism could either increase or decrease LDC welfare. We give parameter restrictions that determine which way it moves.

JEL-codes: F23 J80 O12 (search for similar items in EconPapers)
Date: 2003-06-01, Revised 2007-12-09
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Citations: View citations in EconPapers (1)

Published as “Fairness, Consumer Consciousness and the Welfare of Less Developed Countries” in Global Economy Journal, 8 (1) (2008), Article 7.

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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:101

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