Core Labor Standards and Foreign Direct Investment in Latin America and the Caribbean: Does Lax Enforcement of Labor Standards Attract Investors?

Oct 2003
This paper estimates the impact of the enforcement of core labor standards on FDI in the region and contains the following: 1) Introduction; 2) Survey of the literature on the determinants of FDI: theoretical models, empirical estimation of the determinants of FDI, and the few studies that have examined specifically the links between core labor standards and FDI; 3) Description of data used in this study and explanation of the authors' decision to use sectorally-disaggregated bilateral flows of FDI from the U.S. and Japan as their dependent variable; 4) Details of the methodology used in estimations; 5) Results of the study; 6) Conclusions.