TY - JOUR
T1 - The effects of different entry modes of foreign direct investment on labor rights in the developing world
AU - Biglaiser, Glen
AU - Lee, Hoon
N1 - Publisher Copyright:
© 2019, © 2019 Taylor & Francis Group, LLC.
PY - 2019/3/15
Y1 - 2019/3/15
N2 - Although many studies have investigated the effects of foreign direct investment on labor rights in the developing world, no studies of which we are aware have considered how differences in the mode of entry—that is, mergers and acquisitions (M&As), cross-border joint ventures (JVs), and greenfield investments (GIs)—taken by multinational corporations affect labor rights in host countries. Using panel data for up to 113 developing countries from 1985–2002, we find that foreign firms that enter via M&As tend to have minimal, or slightly negative, effects on labor rights, whereas JVs and GIs support improvements in workers’ rights. Overall, the results suggest that the sectors and motivations associated with JV and GI modes of entry increase labor demand, improving the bargaining power of workers.
AB - Although many studies have investigated the effects of foreign direct investment on labor rights in the developing world, no studies of which we are aware have considered how differences in the mode of entry—that is, mergers and acquisitions (M&As), cross-border joint ventures (JVs), and greenfield investments (GIs)—taken by multinational corporations affect labor rights in host countries. Using panel data for up to 113 developing countries from 1985–2002, we find that foreign firms that enter via M&As tend to have minimal, or slightly negative, effects on labor rights, whereas JVs and GIs support improvements in workers’ rights. Overall, the results suggest that the sectors and motivations associated with JV and GI modes of entry increase labor demand, improving the bargaining power of workers.
UR - http://www.scopus.com/inward/record.url?scp=85073076532&partnerID=8YFLogxK
U2 - 10.1080/14754835.2019.1599833
DO - 10.1080/14754835.2019.1599833
M3 - Article
AN - SCOPUS:85073076532
VL - 18
SP - 165
EP - 183
JO - Journal of Human Rights
JF - Journal of Human Rights
SN - 1475-4835
IS - 2
ER -