Workers' rights in open economies: global production and domestic institutions in the developing world

Previous large-N research suggests that globalization could have either positive or negative consequences for labor rights in developing nations. This article examines the ways in which domestic political institutions and interests conditions the effects of economic globalization. It develops several hypotheses regarding the impact of domestic factors on labor rights outcomes and uses the case of Costa Rica to assess these hypotheses. The result is that although segments of the Costa Rican economy and labor force have benefited from industrial upgrading in recent years, the enclave nature of the export-oriented economy and the historical repression of organized labor render difficult the achievement of some internationally recognized core labor rights. The article concludes by discussing some of the issues for future research that are highlighted by the Costa Rican case. Keywords: labor rights; foreign direct investment; multinational production; Costa Rica; export processing zones