Working Paper: CEPR ID: DP17706
Authors: Joseph Francois; Bernard Hoekman; Miriam Manchin; Filippo Santi
Abstract: Using a large dataset covering more than 180 countries and spanning several decades, we employ a SDID estimator to identify the extent to which trade agreements incorporating non-trade provisions (labor standards, environmental protection and civil and political rights) are associated with improvements in corresponding non-trade per- formance indicators. We distinguish between binding (enforceable) and non-binding pro- visions in trade agreements, and also control for the allocation of official development assistance targeting these three non-trade policy areas. Overall, the results suggest that efforts made to date to include non-trade provisions in trade agreements have not resulted in consistent desired (better) non-trade outcomes.
Keywords: Nontrade policy objectives; Trade agreements; Labor standards; Environmental protection; Civil rights
JEL Codes: F13; F16; F17; F18; F35; O19
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| NTPs in trade agreements (F13) | labor and civil rights indicators (J89) |
| binding labor-related provisions in EU PTAs (J58) | worker protection measures (J81) |
| nonbinding environmental provisions (F18) | official development assistance (ODA) (F35) |
| nonbinding environmental provisions (F18) | environmental quality indicators (Q56) |
| binding NTPs (F33) | forest coverage (Q23) |
| binding NTPs (F33) | PM2.5 emissions and ozone exposure (Q53) |
| nonbinding provisions (Y20) | nontrade outcomes (F19) |