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Journal of Economic Integration 2022 December;37(4) :649-704.
DOI: https://doi.org/10.11130/jei.2022.37.4.649
The Effect of Bilateral Labor Agreements on Trade

Anna Maximova 1 and Mihai Paraschiv 2

1Economics Department, St. Mary's College of California, USA
2Economics Department, State University of New York at Oswego, USA
Corresponding Author: Mihai Paraschiv ,Email: mihai.paraschiv@oswego.edu
Copyright ©2022 Journal of Economic Integration
ABSTRACT
The period following the end of World War II is marked by increased international cooperation aimed, among other things, at promoting economic integration. As part of these efforts, national governments adopted policies to remove/reduce barriers to the exchange of goods and services as well as the movement of capital and labor. Although the impact of international trade and investment treaties on trade has been extensively documented, little to no attention has been paid to the potential impact of bilateral labor agreements (BLAs) on commerce flows. This study uses a novel dataset of BLAs within a gravity framework and finds that, over 5 years following signature, BLAs have a positive and significant effect on aggregate exports and exports of differentiated goods (i.e., chemicals and miscellaneous manufactured goods).

JEL Classification
F14: Empirical Studies of Trade
F15: Economic Integration
F16: Trade and Labor Market Interactions
F22: International Migration
Keywords: bilateral labor agreements; gravity equation; migration; trade
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