South to north investment linkages and decent work in Brazil

Wagner, Patrick; Raess, Damian (2022). South to north investment linkages and decent work in Brazil. Labour economics, 37(1), pp. 122-159. Elsevier 10.1111/labr.12239

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Over the last 25 years, the BRICs asserted themselves as drivers of globalization. But what does their new-found prominence mean for working conditions at home? Using a novel sub-national database covering outward investment linkages and working conditions in Brazilian municipalities, this study tests whether a direct investment in Europe leads to the introduction of decent working conditions in Brazil. The empirical results provide strong support for the investing-up effect using a mixture of panel data analysis and text analysis. The results suggest that economic integration with high-standard developed countries can act as a powerful mechanism for labor standard improvements in developing countries.

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