Labor Standards and Domestic Policies for its Implementation: Changing the Environment for Investors and Economic Growth

Abstract

The paper, after comparing two globally important nations, India & Brazil; aims to show how domestic policies for the implementation of fundamental labor rights can be used to attract foreign direct investments and to contribute to economic growth and poverty reduction. In the past decade, international pressure, sometimes followed by commercial sanctions threats, has been the starter for many countries to review their laws in order to ensure a better respect to internationally recognized labor rights, especially those contented by the 1998 ILO Declaration.

Keywords: labor law, foreign direct investment, economic growth

JEL Classification: J00, K3