 The heterogeneous effects of trade agreements with labour provisionsJacopo Timini, Nicola Cortinovis and Fernando López Vicente The World Economy, 2022, vol. 45, issue 9, 2820-2853 Abstract: Do trade agreements with labour provisions affect trade differently from those without such provisions? Are their effects heterogeneous with respect to the level of development of the countries involved and the labour intensity of goods traded? In this paper, we implement a state‐of‐the‐art structural gravity model with intranational (i.e. domestic) trade and allow for heterogeneous effects depending on the level of enforceability of labour provisions (weak vs. strong provisions), sector (labour vs. non‐labour‐intensive goods), members’ development level (North vs. South) and combinations of the three dimensions. We show that, overall, the trade effects of trade agreements with labour provisions are larger than those without. However, we also find that while exports from the South to the North display a significant increase after a signature of a trade agreements with no or weak labour provisions, this is not the case if strong labour provisions are included in the agreement, and that such differences tend to be larger for labour‐intensive goods. Date: 2022 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:45:y:2022:i:9:p:2820-2853 Ordering information: This journal article can be ordered from Access Statistics for this article The World Economy is currently edited by David Greenaway More articles in The World Economy from Wiley Blackwell |
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