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Race-to-the-bottom or -top at home or abroad: Health and safety standards and the multinational firm

Pavelin, S. and Porter, L. A. (2011) Race-to-the-bottom or -top at home or abroad: Health and safety standards and the multinational firm. Economic and Social Review, 42 (3). pp. 289-311. ISSN 0012-9984

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Official URL: http://www.esr.ie/vol42_3/ESRTOC42_3.htm

Abstract/Summary

We develop a model to illustrate potential complexities in the relationship between corporate geographical diversification and the health and safety (H&S) standards set in national jurisdictions. A firm, that initially has a plant in its home country, may choose to also have one or two foreign plants in order to improve its bargaining position versus local governments, and so ensure reduced H&S standards, i.e. a race-to-the-bottom. However, contrary to the main focus of the popular debate on this topic, we note the potential for the race-to-the-bottom tendency to be exerted on H&S standards in the multinational company’s home rather than host country, and also for an upward push on H&S to instead result.

Item Type:Article
Refereed:Yes
Divisions:Faculty of Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
ID Code:26389
Publisher:Economic and Social Research Institute

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