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Globalisation, Women's Economic Rights and Forced Labour

Author

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  • Eric Neumayer
  • Indra De Soysa
Abstract
Globalisation critics are concerned that increased trade openness and foreign direct investment exacerbate existing economic disadvantages of women and foster conditions for forced labour. Defenders of globalisation argue instead that as countries become more open and competition intensifies, discrimination against any group, including women, becomes more difficult to sustain and is therefore likely to recede. The same is argued with respect to forced labour. This article puts these competing claims to an empirical test. We find that countries that are more open to trade provide better economic rights to women and have a lower incidence of forced labour. This effect holds in a global sample as well as in a developing country sub‐sample and holds also when potential feedback effects are controlled via instrumental variable regression. The extent of an economy's ‘penetration’ by foreign direct investment by and large has no statistically significant impact. Globalisation might weaken the general bargaining position of labour such that outcome‐related labour standards might suffer. However, being more open toward trade is likely to promote rather than hinder the realisation of two labour rights considered as core or fundamental by the International Labour Organisation, namely the elimination of economic discrimination and of forced labour.

Suggested Citation

  • Eric Neumayer & Indra De Soysa, 2007. "Globalisation, Women's Economic Rights and Forced Labour," The World Economy, Wiley Blackwell, vol. 30(10), pages 1510-1535, October.
  • Handle: RePEc:bla:worlde:v:30:y:2007:i:10:p:1510-1535
    DOI: 10.1111/j.1467-9701.2007.01060.x
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    3. Ulla Lehmijoki & Tapio Palokangas, 2009. "Population growth overshooting and trade in developing countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(1), pages 43-56, January.
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    5. Simplice A. Asongu & Uchenna Efobi & Belmondo V. Tanankem & Evans S. Osabuohien, 2019. "Globalisation and Female Economic Participation in Sub-Saharan Africa," Working Papers of The Association for Promoting Women in Research and Development in Africa (ASPROWORDA). 19/005, The Association for Promoting Women in Research and Development in Africa (ASPROWORDA).
    6. Abdelzaher, Dina & Fernandez, Whitney Douglas & Schneper, William D., 2019. "Legal rights, national culture and social networks: Exploring the uneven adoption of United Nations Global Compact," International Business Review, Elsevier, vol. 28(1), pages 12-24.
    7. Amanda Murdie & Dursun Peksen, 2015. "Women’s rights INGO shaming and the government respect for women’s rights," The Review of International Organizations, Springer, vol. 10(1), pages 1-22, March.
    8. Kumar, D. Thresh & Palaniappan, Murugesan & Kannan, Devika & Shankar, K. Madan, 2014. "Analyzing the CSR issues behind the supplier selection process using ISM approach," Resources, Conservation & Recycling, Elsevier, vol. 92(C), pages 268-278.
    9. Simplice A. Asongu & Uchenna R. Efobi & Belmondo V. Tanankem, 2017. "On the Relationship between Globalisation and the Economic Participation of Women in Sub-Saharan Africa," Research Africa Network Working Papers 17/001, Research Africa Network (RAN).
    10. Tatyana Chesnokova & Jesmin Rupa & Nicholas Sim, 2015. "Export Exposure and Gender Specific Work Participation in Indonesia," School of Economics and Public Policy Working Papers 2015-16, University of Adelaide, School of Economics and Public Policy.
    11. Neumayer, Eric & de Soysa, Indra, 2011. "Globalization and the Empowerment of Women: An Analysis of Spatial Dependence via Trade and Foreign Direct Investment," World Development, Elsevier, vol. 39(7), pages 1065-1075, July.
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