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Free Trade Agreements and the Movement of Business People

Author

Listed:
  • Mayer, Thierry

    (Sciences Po, Paris)

  • Rapoport, Hillel

    (Paris School of Economics)

  • Umana-Dajud, Camilo

    (CEPII, Paris)

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 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.

Suggested Citation

  • Mayer, Thierry & Rapoport, Hillel & Umana-Dajud, Camilo, 2024. "Free Trade Agreements and the Movement of Business People," IZA Discussion Papers 16789, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16789
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    References listed on IDEAS

    as
    1. repec:hal:journl:hal-04246927 is not listed on IDEAS
    2. Todd Allee & Manfred Elsig & Andrew Lugg, 2017. "Is the European Union Trade Deal with Canada New or Recycled? A Text-as-data Approach," Global Policy, London School of Economics and Political Science, vol. 8(2), pages 246-252, May.
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    4. Anderson, James E. & Yotov, Yoto V., 2020. "Short run gravity," Journal of International Economics, Elsevier, vol. 126(C).
    5. Dany Bahar & Hillel Rapoport, 2018. "Migration, Knowledge Diffusion and the Comparative Advantage of Nations," Economic Journal, Royal Economic Society, vol. 128(612), pages 273-305, July.
    6. Michele Coscia & Frank M. H. Neffke & Ricardo Hausmann, 2020. "Knowledge diffusion in the network of international business travel," Nature Human Behaviour, Nature, vol. 4(10), pages 1011-1020, October.
    7. Dür, Andreas & Baccini, Leonardo & Elsig, Manfred, 2014. "The design of international trade agreements: introducing a new dataset," LSE Research Online Documents on Economics 59179, London School of Economics and Political Science, LSE Library.
    8. Combes, Pierre-Philippe & Lafourcade, Miren & Mayer, Thierry, 2005. "The trade-creating effects of business and social networks: evidence from France," Journal of International Economics, Elsevier, vol. 66(1), pages 1-29, May.
    9. Cristea, Anca D., 2011. "Buyer-seller relationships in international trade: Evidence from U.S. States' exports and business-class travel," Journal of International Economics, Elsevier, vol. 84(2), pages 207-220, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    free trade agreements; machine learning; text analysis; business travel; migration;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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