Journal Article

Foreign Direct Investment and Labor Rights: A Panel Analysis of Bilateral FDI Flows


  • Busse
  • M.
  • Nunnenkamp
  • P.
  • Spatareanu
  • M.
Publication Date

The paper analyses the impact of fundamental labor rights on bilateral FDI flows to 82 developing countries. The results indicate that investments by multinationals are significantly higher in countries that adhere to labor rights, thereby refuting the hypothesis that repression of these rights fosters FDI.


JEL Classification
F21, F23, J50

Key Words

  • developing countries
  • Entwicklungsländer
  • FDI
  • Labor Rights