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

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.