{"title":"Fragmented Labor Regime: FDI, Labor Regulation, and Workers’ Protests in China","authors":"Tae-hoon Lim","doi":"10.1017/jea.2022.31","DOIUrl":null,"url":null,"abstract":"Abstract How does the influx of foreign direct investment (FDI) affect labor protests in China? Building on the framework of fragmented authoritarianism, I argue that the regional competition to attract foreign investment causes labor protests in China due to its deregulatory effects on labor regulation. Each actor, including the central and local governments, foreign investors, and workers, has different cost–benefit considerations, which provide an explanation for the link between foreign investment and labor protests. By theorizing each actor's preferences, this article explains how FDI induces labor deregulation and workers’ protests in China. Analyzing China's prefecture-level city data from 2012 to 2018, I find that the influx of FDI is positively associated with labor protests. The result remains robust to alternative model specifications and instrumental variable estimation. I also provide empirical evidence for the deregulatory effect of FDI on labor standards with an analysis at the firm level using the World Bank Enterprise Survey. These findings deepen our understanding of how FDI shapes labor regulation and induces workers’ protests in the context of China.","PeriodicalId":45829,"journal":{"name":"Journal of East Asian Studies","volume":null,"pages":null},"PeriodicalIF":1.2000,"publicationDate":"2023-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of East Asian Studies","FirstCategoryId":"90","ListUrlMain":"https://doi.org/10.1017/jea.2022.31","RegionNum":3,"RegionCategory":"社会学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"SOCIAL SCIENCES, INTERDISCIPLINARY","Score":null,"Total":0}
引用次数: 0
Abstract
Abstract How does the influx of foreign direct investment (FDI) affect labor protests in China? Building on the framework of fragmented authoritarianism, I argue that the regional competition to attract foreign investment causes labor protests in China due to its deregulatory effects on labor regulation. Each actor, including the central and local governments, foreign investors, and workers, has different cost–benefit considerations, which provide an explanation for the link between foreign investment and labor protests. By theorizing each actor's preferences, this article explains how FDI induces labor deregulation and workers’ protests in China. Analyzing China's prefecture-level city data from 2012 to 2018, I find that the influx of FDI is positively associated with labor protests. The result remains robust to alternative model specifications and instrumental variable estimation. I also provide empirical evidence for the deregulatory effect of FDI on labor standards with an analysis at the firm level using the World Bank Enterprise Survey. These findings deepen our understanding of how FDI shapes labor regulation and induces workers’ protests in the context of China.
期刊介绍:
Experts from around the globe come together in this important peer-reviewed forum to present compelling social science research on the entire East Asia region. Topics include democratic governance, military security, political culture, economic cooperation, human rights, and environmental concerns. Thought-provoking book reviews enhance each issue. Want more information information on Journal of East Asian Studies? Sign up for our E-Alerts for regular updates.