Labor Rights and Foreign Direct Investment: Is There a Race to the Bottom?
In: International interactions: empirical and theoretical research in international relations, Band 38, Heft 3, S. 267-294
ISSN: 1547-7444
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In: International interactions: empirical and theoretical research in international relations, Band 38, Heft 3, S. 267-294
ISSN: 1547-7444
In: Foreign Policy Analysis, Band 8, Heft 4, S. 431-452
In: Foreign policy analysis, Band 8, Heft 4
ISSN: 1743-8594
A burgeoning body of literature assesses the sociopolitical factors that influence investment decisions, including the nature of domestic institutions, societal rights, and participation in international institutions and agreements. Oddly enough, these have evolved largely as separate lines of research, and little effort has been made to compare the relative importance of these sociopolitical factors in making investment decisions. Moreover, though the diverse nature of foreign direct investment (FDI) is widely noted, extant research relies almost exclusively upon the examination of aggregate FDI. As a result, scholars have little insight into the ways that investors prioritize these factors, or how they vary across different industries. In an effort to synthesize these strands of research and further deepen our understanding of the determinants of investment decisions, this study models the prospective impact of several sociopolitical variables that have been found to significantly influence FDI-human rights, democratic governance, and commitment to international trade agreements and investment treaties-across multiple investment sectors. Adapted from the source document.
In: International interactions: empirical and theoretical research in international relations, Band 38, Heft 3, S. 267-294
ISSN: 0305-0629
As global awareness of human rights continues to increase, the practices and investment decisions of multinational corporations have come under increased scrutiny. This is particularly the case with labor rights. Popular arguments concerning a "race to the bottom" abound, though a growing amount of scholarship portrays a more positive relationship between foreign capital and such rights. Yet empirical studies have yielded mixed results. To clarify the linkages between labor rights and foreign direct investment (FDI), we add to the extant literature in two ways. First, we take into account the reciprocal relationship between FDI and labor rights. Second, as FDI is a heterogeneous phenomenon, we assess these linkages across three different industrial sectors. Our findings show that there is a significant relationship between labor rights and FDI, though its exact nature varies across sectors. (International Interactions/ FUB)
World Affairs Online
In: International union rights: journal of the International Centre for Trade Union Rights, Band 24, Heft 1, S. 6-28
ISSN: 2308-5142