The Interrelation between Political Instability and Child Labour in Developing Countries

Abstract

This study has examined the impact of political instability on child labour on the panel of 53 developing economies. To conduct this analysis, this study has applied GMM (generalized method of moments) techniques to the panel data of child labour (dependent variable) and political instability urbanisation, inflation, gross domestic product, and trade (independent variables) from 2000 to 2015. In addition, it has conducted the disaggregated analysis, which is based on the level of income in developing economies. This study has concluded that political instability has a positive impact on child labour in developing countries. Child labour is positively related to inflation and trade, negatively associated with economic growth rate and urbanization. According to disaggregated analysis, political instability also positively affects child labour in low-income and high-income countries. Still, trade has a positive impact on high-income countries and a negative impact on low-income countries. In addition, control variables and child labour in the primary model and disaggregate analysis have the same relationships. Empirical results of this study suggest that political instability plays a critical role in increasing child labour in developing countries and has indicated that the government of developing countries should pay particular attention to political instability. Child labour can be reduced by taking good steps toward controlling political instability.