Abstract First, this study measures the level of labor standards of Japan, Republic of Korea, Singapore, and ROC. The results find the level of economic development does not match the level of labor standards of the country; namely, Japan has the highest level of economic development, among these four Asian countries yet ROC has the highest statutory labor standards. After measuring the labor standards of each country, ROC is taken as a case study of the effect of level of labor standards on the FDI inflows, and hence the rate of economic growth. This research has found the rate of increase of GDP is an important determinant of the rate of FDI inflow growth. This study also found a negative relationship between the level of labor standards and the inflow of FDI in ROC. In ROC, the negative relationship between labor standards and FDI inflows is clear, however further statistical analysis with larger sample size is needed before generating the conclusion of this.
