Free Trade Agreements and the movement of business people

Thierry Mayer, Hillel Rapoport () and Camilo Umana-Dajud
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Camilo Umana-Dajud: CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique

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Abstract: Using provisions to ease the movement of business visitors in trade agreements, we show that removing barriers to the movement of business people promotes trade. We document the increasing complexity of Free Trade Agreements (FTAs) and develop an algorithm that combines machine learning and text analysis techniques to examine the content of FTAs. We use the algorithm to determine which FTAs include provisions to facilitate the movement of business people and whether these are included in dispute settlement mechanisms. We show that provisions facilitating business travel are effective in promoting them and eventually increase bilateral trade flows. The paper provides (indirect) evidence of the role of face-to-face interaction on aggregate bilateral trade flows.

Keywords: Free trade agreements; Business travel; Trade; Migration (search for similar items in EconPapers)
Date: 2025-01
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Published in Journal of Economic Geography, 2025, 25 (1), pp.93-126. ⟨10.1093/jeg/lbae046⟩

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Related works:
Working Paper: Free Trade Agreements and the movement of business people (2025)
Working Paper: Free Trade Agreements and the movement of business people (2025)
Working Paper: Free Trade Agreements and the movement of business people (2024)
Working Paper: Free Trade Agreements and the movement of business people (2024)
Working Paper: Free Trade Agreements and the Movement of Business People (2024)
Working Paper: Free Trade Agreements and the Movement of Business People (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-04954659

DOI: 10.1093/jeg/lbae046

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