Foreign Direct Investment, Global Value Chains, and Labor Rights: No Race-to-the- Bottom?
Description
This dataset and its accompanying Stata do-file allows the user to replicate the empirical exercises from the paper "Foreign Direct Investment, Global Value Chains, and Labor Rights: No Race-to-the- Bottom?" in the Journal of Development Economics. We investigate the relationship between global value chains (GVC's) and workers' collective bargaining rights. We have various measures of GVC's and a panel data set of 185 countries, and we use instrumental variables to deal with the endogeneity of GVC's. We find weak effects of GVC's on labor rights in most specifications, but in most cases the instruments are weak. The one case with strong instruments and a strong effect shows a positive effect of related-party trade on labor rights in developing countries. The full description of the data and what we do is in the Online Appendix, and full information about processing the data is in the do-file.