The effect of trade openness on child labor: Empirical evidence from developing economies

The aim of this study is to investigate the impact of international trade on the child labor by using new trade theory among the developing countries based on trade induced child labor effects. The relationship between the child labor and the selection and scale effect for the developing countries w...

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Main Authors: Rossazana, Ab-Rahim, Bilal, Tariq
Format: Article
Language:English
Published: Universiti Putra Malaysia 2016
Subjects:
Online Access:http://ir.unimas.my/id/eprint/13965/
http://ir.unimas.my/id/eprint/13965/7/The%20Effect%20Of%20Trade%20Openness%20On%20Child%20Labor%20%28abstract%29.pdf
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author Rossazana, Ab-Rahim
Bilal, Tariq
author_facet Rossazana, Ab-Rahim
Bilal, Tariq
author_sort Rossazana, Ab-Rahim
building UNIMAS Institutional Repository
collection Online Access
description The aim of this study is to investigate the impact of international trade on the child labor by using new trade theory among the developing countries based on trade induced child labor effects. The relationship between the child labor and the selection and scale effect for the developing countries which are engaged in the trade of both differentiated and homogeneous goods is further examined. The ratio of gross domestic product (GDP) and industrial value added represents the scale effect while the selection effect refers to the exit of least efficient firms due to trade liberalization. The results of generalized least squares (GLS) technique show child labor decreases with an increase in the value added. In addition, the findings also indicate the overall effect of trade along with trade child labor induced effects is favorable in the reduction of child labor. The results imply trade liberalization is a gain to the developing economies in the form of child labor reduction.
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spelling unimas-139652016-10-19T01:04:31Z http://ir.unimas.my/id/eprint/13965/ The effect of trade openness on child labor: Empirical evidence from developing economies Rossazana, Ab-Rahim Bilal, Tariq HF Commerce HG Finance The aim of this study is to investigate the impact of international trade on the child labor by using new trade theory among the developing countries based on trade induced child labor effects. The relationship between the child labor and the selection and scale effect for the developing countries which are engaged in the trade of both differentiated and homogeneous goods is further examined. The ratio of gross domestic product (GDP) and industrial value added represents the scale effect while the selection effect refers to the exit of least efficient firms due to trade liberalization. The results of generalized least squares (GLS) technique show child labor decreases with an increase in the value added. In addition, the findings also indicate the overall effect of trade along with trade child labor induced effects is favorable in the reduction of child labor. The results imply trade liberalization is a gain to the developing economies in the form of child labor reduction. Universiti Putra Malaysia 2016 Article PeerReviewed text en http://ir.unimas.my/id/eprint/13965/7/The%20Effect%20Of%20Trade%20Openness%20On%20Child%20Labor%20%28abstract%29.pdf Rossazana, Ab-Rahim and Bilal, Tariq (2016) The effect of trade openness on child labor: Empirical evidence from developing economies. International Journal of Economics and Management, 10 (1). pp. 155-171. ISSN 1823 - 836X https://www.scopus.com/inward/record.uri?eid=2-s2.0-84986893069&partnerID=40&md5=b66929b304f940a1293759cc2284beee
spellingShingle HF Commerce
HG Finance
Rossazana, Ab-Rahim
Bilal, Tariq
The effect of trade openness on child labor: Empirical evidence from developing economies
title The effect of trade openness on child labor: Empirical evidence from developing economies
title_full The effect of trade openness on child labor: Empirical evidence from developing economies
title_fullStr The effect of trade openness on child labor: Empirical evidence from developing economies
title_full_unstemmed The effect of trade openness on child labor: Empirical evidence from developing economies
title_short The effect of trade openness on child labor: Empirical evidence from developing economies
title_sort effect of trade openness on child labor: empirical evidence from developing economies
topic HF Commerce
HG Finance
url http://ir.unimas.my/id/eprint/13965/
http://ir.unimas.my/id/eprint/13965/
http://ir.unimas.my/id/eprint/13965/7/The%20Effect%20Of%20Trade%20Openness%20On%20Child%20Labor%20%28abstract%29.pdf