Abstract
As labor provisions in regional trade agreements proliferate, critics contend that they are used for protectionist purposes. Existing categories of labor clauses lead to inconsistent empirical results. We propose and apply a new typology for labor clauses to all WTO-notified regional trade agreements from the 1990s through February 2016 and generate Pseudo Poisson Maximum Likelihood and Two-Stage Heckman gravity model estimates of the relationship between labor provisions and bilateral trade. Although individually heterogeneous, the overall relationship between labor provisions and pair-wise trade is positive. Contrary to contention, our estimates suggest that labor provisions reduce trade costs and facilitate trade.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
