Content uploaded by Layna Mosley
Author content
All content in this area was uploaded by Layna Mosley on Mar 29, 2014
Content may be subject to copyright.
A preview of the PDF is not available
Trade-Based Diffusion of Labor Rights: A Panel Study, 1986–2002
Abstract
This article investigates the nature of the linkages between trade and labor rights in developing countries. Specifically, we hypothesize that a “California effect” serves to transmit superior labor standards from importing to exporting countries, in a manner similar to the transmission of environmental standards. We maintain that, all else being equal, the labor standards of a given country are influenced not by its overall level of trade openness, but by the labor standards of its trading partners. We evaluate our hypothesis using a panel of 90 developing countries over the period 1986–2002, and we separately examine the extent to which the labor laws and the actual labor practices of the countries are influenced by those of their export destinations. We find that strong legal protections of collective labor rights in a country's export destinations are associated with more stringent labor laws in the exporting country. This California effect finding is, however, weaker in the context of labor rights practices, highlighting the importance of distinguishing between formal legislation and actual implementation of labor rights.
... These conditions often were not present, however, and market-based upgrading was in any case a longer-term process. See Greenhill, Mosley, andPrakash (2009), Locke (2013), and Malesky and Mosley (2018). It is worth noting, however, that Guasti and Koenig-Archibugi's (2022) recent study finds no evidence that export competition generates a race to the bottom in labor standards. ...
The post-World War II liberal international order coupled trade liberalization with a range of flanking measures, both outward-looking and inward-looking. This system, coupling domestic-level compensation with international-level flexibility, no longer functions as effectively as it once did. To consider how a renewed set of flanking policies might address, or even prevent, a backlash against trade liberalization, we explore why the earlier system (embedded liberalism plus temporarily tolerated relief) did not always function effectively. We note the challenges associated with generous domestic compensation schemes, especially in the face of capital mobility and fiscal pressures. We discuss the interstate tensions generated by the use of temporary relief measures, such as escape clauses and safeguards, and we also discuss how the expansion in membership of the multilateral trade system (and particularly the inclusion of countries with a greater array of economic institutions and factor endowments) exacerbates these challenges. Finally, we consider how the domestic politics of flanking policies could differ from those used in an earlier era.
... To answer these questions, a starting point might be the classic research on the race to the bottom/top because it provides insight on where multinational firms are locating and why (i.e. the cost calculations, incentives, and actions of firms in the globalized economy). This RTB/RTT research has produced mixed findings on the effects of both trade and multinational production on either pollution and labor outcomes (Adolph et al., 2017;Antweiler et al., 2001;Busse & Silberberger, 2013;Birdsall & Wheeler, 1993;Cao & Prakash, 2012;Cole et al., 2010;Greenhill et al., 2009;Mosley & Uno, 2007;Mosley, 2017;Shapiro & Walker, 2018). Thus, another starting point might be the research on how domestic environmental regulations affect globalization patterns. ...
... Finally, our research builds on growing research about CSR. Others have shown that international trade and investment ties among firms may contribute to the diffusion of environmental or labor standards as firms engaged in global business begin "trading up" or "investing up" (28)(29)(30)(31)(32)(33). In the case of divestment from Burma by multinational firms, both home state political characteristics and interfirm networks shaped diffusion patterns (34). ...
States have long used economic sanctions in response to violations of international law as a strategy to restore order. Increasingly, firms also reject doing business with violators. In response to the war in Ukraine, hundreds of multinational corporations voluntarily withdrew from Russia, even when policymakers were still debating the extent of sanctions. How did firm managers evaluate whether to withdraw from the Russian market? Using a survey experiment with Japanese firm managers conducted three months after the Russian invasion of Ukraine in 2022, we explore how peer effects—information on what other firms are doing in response to the crisis—influence support for withdrawal of business activity with Russia. Our findings show that information about withdrawal by other firms from a diverse set of countries promotes peer conformity that increases support. In contrast, information about ongoing business with Russia by Chinese firms fosters competition that reduces support. Market exposure moderates these reactions, although the concern about peer behavior does not appear to be driven by a reputation mechanism. Our research provides insight into how business actors perceive the strategic interplay of peer influence and market dynamics in the context of geopolitical conflicts.
Debates on labor regimes situate worker outcomes at the intersection of globalized production and specific social formations, but they do not specify how and why labor regimes change over time. This article presents a new approach to explaining how labor regimes change in the global apparel industry, the labor-led profit squeeze approach, combining insights from global production networks (GPN), development economics and labor studies. This approach argues that workers’ bargaining power is largely conditional upon processes of structural transformation. The article demonstrates this conceptual approach through a comparative analysis of the apparel export industries in Madagascar, Cambodia, and Vietnam.
Calls to improve labor conditions in global supply chains frequently urge more robust responsibility-taking by brands/buyers, various forms of state intervention, and respect for worker collective action. In this article, we examine perceptions of these paths to reform among workers and managers in Indonesia's export-oriented apparel sector during the COVID-19 pandemic. Extending research on labor regimes and global supply chains, we consider how both workplace cleavages and signals from buyers may shape local demands for reform. We use survey data from 96 factories to gauge perceptions among workers and managers, including a survey experiment on the effects of a distant brand/buyer pledge of support. Amidst conflicting interests and pandemic-era precarity, we find broad agreement among workers and managers on some measures, including local government intervention, general references to collective action, and even the contested issue of labor market flexibilization. A hypothetical promise of support from distant buyers had limited effects overall but did dampen some local demands among production workers. These findings imply that while combining responsible sourcing from above, mobilization from below, and state intervention is often desirable, buyer initiatives could hinder grassroots mobilization in some circumstances.
In this Part 2, Subjective Agency, I delve into the evolving power and agency of workers as structural conditions undergo transformation. Part 1 described how the law of competition propels firms towards centralisation, gradually diminishing the monopsony power wielded by global buyers in labour-intensive sectors. While manufacturers gain more power and significance, capable of undermining workers’ power, they also become susceptible to disruption. This section introduces the concept of Degree of Spatial Inflexibility ( dsi ). It posits that as a manufacturer’s monopoly power increases, the monopsony power in the supply chain decreases. However, this elevated monopoly power simultaneously establishes a higher dsi , amplifying the potential for worker disruption. It is essential to recognise that structural power shifts do not guarantee automatic benefits for workers; instead, they necessitate workers to capitalise on these vulnerabilities. This establishes a dialectical relationship between the evolving conditions of capital outlined in Part 1 and the subjective agency of workers, as detailed in Part 2 below.
Since the 2000s, China has deepened public relations in its engagement with Africa primarily through economic investment and assistance. The present work looks at China’s African public relations and the mechanism that shapes public perception of China, focusing on Mali. Mali is not a major destination for Chinese investment, yet public perceptions of China appear to be uniquely positive. How may we explain this trajectory? The work undertakes a longitudinal examination, comparing China’s economic developments in Mali (2010–20) with Malians’ perception of China’s influence on the Malian economy that shapes the general perception and attitude towards China (2010–20) and the media’s role in this process. Some questions guide this study: how do Chinese economic activities in Mali shape Malians’ perception of China? How does the media contribute (if any) to shaping Malian perception of China’s developmental programmes? Employing a mixed research method and a range of datasets, I find that economic investment does not necessarily shape positive public perception of China in Mali. Instead, how the public receives information about economic investments shapes and enhances a positive perception of China in Mali. Consequently, China would substantially enhance its image-building effort when its foreign economic development assistance is linked with public relations, making economic programmes more visible through media representations. I based the theoretical discussion on the media agenda-setting framework.
Many countries have ratified both universal and regional human rights treaties. But does ratification matter? Do state parties to international human rights treaties improve their human rights record after ratification? This paper attempts to improve on the two existing studies. It finds, contrary to the pessimistic picture painted by the existing evidence, that human rights treaty ratification is often associated with an improvement in respect for human rights. However, the answer to the question raised is complex and it depends on which treaty and which aspect of human rights one looks at as well as whether or not other explanatory variables, including the lagged dependent variable, are included.
Postimperialism is a theory of political and social change inspired by the explosive growth of transnational corporate enterprise during the latter 20th century. Its foundations are derived from two primary sources: political theories of the modern business corporation and class-analytical theories of society. However, the postimperialist theory of class formation is predicated on power relations, a departure from conventional class analysis that renders the theory applicable universally to countries at different stages of economic development. Postimperialist thinkers contend that the formation of a global bourgeoisie, resulting from transnational class coalescence, coincides with the evolution of institutions and public policies that are compatible with socialist as well as capitalist principles.
This book provides theoretical contributions to postimperialist theory as well as case studies of both individual countries (Britain, Cuba, the United States) and regions of the world (Africa, postcommunist Europe). It also contains historical analyses of the origins of postimperialist thought in Mexico and the United States. Topics considered include the transfer of cultural and ideological values, multilateral legal responses to transnational oligopolies, the problems of predatory corporate behavior and perceived neoimperial threats, working-class responses to the challenges of transnational enterprise, the effects of resistance to market-based economic reforms, opposition to imperial spheres of influence, and postimperialism's contributions to theories of international politics.
The MIT Sloan School of Management perspective on future management challenges.
The MIT Sloan School of Management, as conceived by the legendary General Motors chairman Alfred P. Sloan, was founded in 1952 to draw on the scientific and technical resources of MIT and approach the problems of management with the rigorous research practices for which MIT was famous. Fifty years later, the Sloan School gathered international leaders in business and management, MIT faculty, students, and alumni to address again the basic principles that should guide business and management. This book presents the papers prepared by student-faculty teams, speeches by business and world leaders, and summaries of the discussions from this special convocation; taken together, they offer a guide to the future of management based on the hallmarks of MIT and Sloan—creativity and innovation.
The topics considered coalesced around three main themes. First, and paramount, is the necessity of building and maintaining trust by means of openness, transparency, and accountability; this was addressed in speeches by Kofi Annan and Carly Fiorina and exemplified by the case study presented of Nike's efforts to rebuild the trust of customers. The increasingly complex conditions of the modern global economy emerged as another recurring theme, as the participants considered the effect of the growing spectrum of stakeholders on issues of corporate governance. The third common theme was the inescapability of technological and scientific change, from the Internet as a marketing tool to the organizational impact of information technology.
Applying the new economics of organization and relational theories of the firm to the problem of understanding cross‐national variation in the political economy, this volume elaborates a new understanding of the institutional differences that characterize the ‘varieties of capitalism’ found among the developed economies. Building on a distinction between ‘liberal market economies’ and ‘coordinated market economies’, it explores the impact of these variations on economic performance and many spheres of policy‐making, including macroeconomic policy, social policy, vocational training, legal decision‐making, and international economic negotiations. The volume examines the institutional complementarities across spheres of the political economy, including labour markets, markets for corporate finance, the system of skill formation, and inter‐firm collaboration on research and development that reinforce national equilibria and give rise to comparative institutional advantages, notably in the sphere of innovation where LMEs are better placed to sponsor radical innovation and CMEs to sponsor incremental innovation. By linking managerial strategy to national institutions, the volume builds a firm‐centred comparative political economy that can be used to assess the response of firms and governments to the pressures associated with globalization. Its new perspectives on the welfare state emphasize the role of business interests and of economic systems built on general or specific skills in the development of social policy. It explores the relationship between national legal systems, as well as systems of standards setting, and the political economy. The analysis has many implications for economic policy‐making, at national and international levels, in the global age.
A great deal of research has focused on the role of governments, nongovernmental organizations, and advocacy groups in promoting environmental ideologies. Researchers and activists have generally assumed antienvironmental and antiregulatory stances on the part of corporations. Exporting Environmentalism is the first book to examine industry's transnational promotion of environmental ideas and practices. The book also challenges and complements other theoretical approaches to the study of international environmental politics. Rather than positing change in national and international environmental policy as the only valuable outcome, it looks at the environmental benefits of changes in perspectives, policies, and practices within the firms themselves. Ronie Garcia-Johnson shows that multinational corporations have incentives to raise the environmental, health, and safety standards of domestic companies in their host countries to maintain their competitive advantage. To determine industry's exportation and importation of environmentalism, Garcia-Johnson focuses on the flow of ideas, values, and strategies from United States-based chemical companies to companies in Mexico and Brazil. The comparative case study explains how and why Mexican and Brazilian companies are importing environmental ideas and changing their production policies. Garcia-Johnson then explores the effects of these private policies on communities, nongovernmental organizations, governments, and national environmental politics within Brazil and Mexico.
This paper introduces the subject of private politics, presents a research agenda, and provides an example involving activists and a firm. Private politics addresses situations of conflict and their resolution without reliance on the law or government. It encompasses the political competition over entitlements in the status quo, the direct competition for support from the public, bargaining over the resolution of the conflict, and the maintenance of the agreed-to private ordering. The term private means that the parties do not rely on public order, i.e., lawmaking or the courts. The term politics refers to individual and collective action in situations in which people attempt to further their interests by imposing their will on others. Four models of private politics are discussed: (1) informational competition between an activist and a firm for support from the public, (2) decisions by citizen consumers regarding a boycott, (3) bargaining to resolve the boycott, and (4) the choice of an equilibrium private ordering to govern the ongoing conflicting interests of the activist and the firm.
The diffusion of markets and democracy around the world was a defining feature of the late twentieth century. Many social scientists view this economic and political liberalization as the product of independent choices by national governments. This book argues that policy and political changes were influenced heavily by prior actions of external actors: not just other governments, but international organizations and communities of experts. Drawing together insights from economics, sociology, political science, and international relations, the contributors focus on four mechanisms by which markets and democracy have diffused through interdependent decision making: coercion and the impact of powerful countries and international actors; economic competition for markets and investment; learning from experiences of other countries; and emulation among countries. These mechanisms are tested empirically using sophisticated quantitative techniques in areas as diverse as capital account and investment policy, human rights and democratization, and government downsizing, privatization, and taxation.
A great deal of research has focused on the role of governments, nongovernmental organizations, and advocacy groups in promoting environmental ideologies. Researchers and activists have generally assumed antienvironmental and antiregulatory stances on the part of corporations. Exporting Environmentalism is the first book to examine industry's transnational promotion of environmental ideas and practices. The book also challenges and complements other theoretical approaches to the study of international environmental politics. Rather than positing change in national and international environmental policy as the only valuable outcome, it looks at the environmental benefits of changes in perspectives, policies, and practices within the firms themselves.Ronie Garcia-Johnson shows that multinational corporations have incentives to raise the environmental, health, and safety standards of domestic companies in their host countries to maintain their competitive advantage. To determine industry's exportation and importation of environmentalism, Garcia-Johnson focuses on the flow of ideas, values, and strategies from United States-based chemical companies to companies in Mexico and Brazil. The comparative case study explains how and why Mexican and Brazilian companies are importing environmental ideas and changing their production policies. Garcia-Johnson then explores the effects of these private policies on communities, nongovernmental organizations, governments, and national environmental politics within Brazil and Mexico.