Trade, FDI and Child Labour in developing countries: does parental education matter?
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2019-08-15
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en
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This paper analyses how the level of parental education can influence the effect of FDI on child labour in developing countries. The central hypothesis presented is that the effect of FDI has a higher impact on child labour for families with less educated parents. The hypotheses are derived from an analysis of the model of Basu and Van (1998), Maseland and de Vaal (2011) and an extensive literature review. This study employed a panel data analysis, which included a sample of 99 developing countries for a period from 2006 to 2016. The child labour is represented by two proxies: the first and second school enrolment rate. The results of the study demonstrate that in the immediate impact of FDI on child labour, the income effect prevails, where the importance of the FDI effect is higher for families with less educated parents. However, after a few years, the effect changes towards a prevailing of the substitution effect, which has a more significant impact on families with better-educated parents.
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Faculteit der Managementwetenschappen