Labor Protection and Investment Regulation: Promoting a Virtuous Circle

17 Pages Posted: 22 Sep 2016

See all articles by Jordi Agustí-Panareda

Jordi Agustí-Panareda

International Labour Office

Sergio Puig

University of Arizona - James E. Rogers College of Law

Date Written: 2015

Abstract

The policy goals of promoting foreign direct investment (FDI) and improving labor conditions of workers are often characterized as exclusionary. This short essay surveys the empirical literature and discusses the potential for positive synergies between FDI and labor. Research shows that the two are not at odds; on the contrary, they can buttress each other. A virtuous circle needs to be drawn between the two, but not because doing so may have a positive impact on economic variables such as production, revenue, economic development, or trade measurements. Rather, and more simply, it should be drawn because the only defensible relationship between FDI and labor is one in which the living conditions of workpeople improve. Albeit often neglected, the core of any set of economic considerations is its human dimension: labor.

Keywords: foreign direct investment, labor conditions, FDI, economic considerations

Suggested Citation

Agustí-Panareda, Jordi and Puig, Sergio, Labor Protection and Investment Regulation: Promoting a Virtuous Circle (2015). 51 Stanford Journal of International Law 105 (2015); Arizona Legal Studies Discussion Paper No. 16-35. Available at SSRN: https://ssrn.com/abstract=2841929

Jordi Agustí-Panareda

International Labour Office ( email )

Route des Morillons 4
Geneva, 1211
Switzerland

Sergio Puig (Contact Author)

University of Arizona - James E. Rogers College of Law ( email )

P.O. Box 210176
Tucson, AZ 85721-0176
United States

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