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Pursuing Environmental and Social Objectives through Trade Agreements

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  • Francois, Joseph
  • Hoekman, Bernard
  • Manchin, Miriam
  • Santi, Filippo

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.

Suggested Citation

  • Francois, Joseph & Hoekman, Bernard & Manchin, Miriam & Santi, Filippo, 2022. "Pursuing Environmental and Social Objectives through Trade Agreements," CEPR Discussion Papers 17706, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17706
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    1. Alessandro Ferrari & Matteo Fiorini & Joseph Francois, Bernard Hoekman, Lisa Maria Lechner, Miriam Manchin, Filippo Santi, 2021. "EU Trade Agreements and Non-Trade Policy Objectives," RSCAS Working Papers 2021/48, European University Institute.
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    4. Abman, Ryan & Lundberg, Clark & Szmurlo, Daniel, 2022. "Trade, Emissions, and Environmental Spillovers: Issue Linkages in Regional Trade Agreements," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322511, Agricultural and Applied Economics Association.
    5. Kailan Tian & Yu Zhang & Yuze Li & Xi Ming & Shangrong Jiang & Hongbo Duan & Cuihong Yang & Shouyang Wang, 2022. "Regional trade agreement burdens global carbon emissions mitigation," Nature Communications, Nature, vol. 13(1), pages 1-12, December.
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    Cited by:

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    2. Hoekman, Bernard & Santi, Filippo & Shingal, Anirudh, 2023. "Trade effects of non-economic provisions in trade agreements," Economics Letters, Elsevier, vol. 226(C).

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    More about this item

    Keywords

    Non-trade policy objectives;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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