The effects of globalization on child labor in developing countries

This paper inquires the effects of globalization on child labor in developing countries via crosscountryanalysis by decomposing globalization to its components; foreign direct investment(FDI) and trade. The findings reveal that the relationship between the child labor supply andgross domestic product per capita (PCGDP) can be expressed as a U shape. The study indicatesthat the child labor increases in the developing countries whose PCGDP levels are above 7 500USD since the net effect of globalization is positive for the positive substitution effect is biggerthan the negative income effect. Data have been collected from UNICEF and World Bank.