As globalization furthers, developing states increasingly rely on the inflow of Foreign Direct Investment (FDI) for development. Consequently, scholarly debate has focused on the potential presence...Show moreAs globalization furthers, developing states increasingly rely on the inflow of Foreign Direct Investment (FDI) for development. Consequently, scholarly debate has focused on the potential presence of a race to the bottom in labor standards. The race to the bottom thesis assumes as states compete to attract FDI, working conditions will decrease. Literature on the race to the bottom thesis is vast but has yielded mixed results. Traditionally, research has included both developed and developing states and focused on the economy as a whole. This paper transcends previous research by qualitatively studying the effects of FDI on working conditions in the garment and footwear industry in Cambodia and Vietnam. This paper not only focuses on the presence of a race to the bottom, but also what it looks like and what might be other factors of influence. Additionally, this research attempts to place the race to the bottom into the broader debate on neoliberal capitalist development. This paper has found that although macro-trends in the global economy indicate a race to the bottom, comparative research on Cambodia and Vietnam shows that compliance is generally high. However, cost-cutting measures are still observed in the composition of the labor force, contracts, and oppression of organized labor.Show less
