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Labor Clauses in Preferential Trade Agreements: How Do They Affect Informality?

Rihab Bellakhal et al.

Journal of Economic Integration2025https://doi.org/10.11130/jei.2025001article
AJG 1ABDC C
Weight
0.50

What the paper says

We study the effect of the labor clauses (LCs) in preferential trade agreements (PTAs) on the informal economy. Using a sample comprising 112 countries for the period 2000-2017, we show that PTAs increase informality in low- and middle-income economies (LMIEs), regardless of whether LCs are included or not. This result is confirmed when accounting for the heterogeneity of parties to the agreement. Finally, PTAs with LCs whose implementation relies on deep cooperation mechanisms decrease informality in LMIEs when their partners are high-income economies. The policy implication is that LMIEs should foster the integration of LCs enforced through deep cooperation mechanisms.

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https://doi.org/https://doi.org/10.11130/jei.2025001

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@article{rihab2025,
  title        = {{Labor Clauses in Preferential Trade Agreements: How Do They Affect Informality?}},
  author       = {Rihab Bellakhal et al.},
  journal      = {Journal of Economic Integration},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.11130/jei.2025001},
}

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Labor Clauses in Preferential Trade Agreements: How Do They Affect Informality?

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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