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You searched for: Content Type Research Paper Remove constraint Content Type: Research Paper Publishing Institution Watson Institute for International Studies, Brown University Remove constraint Publishing Institution: Watson Institute for International Studies, Brown University Political Geography Global Focus Remove constraint Political Geography: Global Focus Topic International Political Economy Remove constraint Topic: International Political Economy
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  • Author: Greg Distelhorst, Richard M. Locke
  • Publication Date: 12-2016
  • Content Type: Research Paper
  • Institution: Watson Institute for International Studies, Brown University
  • Abstract: What is the relationship between trade and social institutions in the developing world? The research literature is conflicted: importing firms may demand that trading partners observe higher labor and environmental standards, or they may penalize higher standards that raise costs. This study uses new data on retailers and manufacturers to analyze how firm-level trade responds to information about social standards. Contrary to the "race to the bottom" hypothesis, it finds that retail importers reward exporters for complying with social standards. In difference-in-differences estimates from over two thousand manufacturing establishments in 36 countries, achieving compliance is associated with a 4% [1%, 7%] average increase in annual purchasing. The effect is driven largely by the apparel industry — a longterm target of anti-sweatshop social movements — suggesting that activist campaigns can shape patterns of global trade.
  • Topic: International Political Economy
  • Political Geography: Global Focus
  • Author: Greg Distelhorst, Jens Hainmueller, Richard M. Locke
  • Publication Date: 08-2015
  • Content Type: Research Paper
  • Institution: Watson Institute for International Studies, Brown University
  • Abstract: This study tests the hypothesis that lean manufacturing improves the social performance of manufacturers in emerging markets. We analyze an intervention by Nike Inc. to promote the adoption of lean manufacturing in its apparel supply chain across eleven developing countries. Using difference-in-differences estimates from a panel of over three hundred factories, we find that lean adoption was associated with a 15 percentage point reduction in noncompliance with labor standards that primarily reflect factory wage and work hour practices. However, we find a null effect on factory health and safety standards. This pattern is consistent with a causal mechanism that links lean to improved social performance through changes in labor relations, rather than improved management systems. These findings offer evidence that capabilitybuilding interventions may reduce social harm in global supply chains.
  • Topic: International Political Economy
  • Political Geography: Global Focus