The Impact of GATT on International Trade: Evidence from Structural Break Analysis
AbstractIn this study we test for structural changes in international trade patterns of 77 countries over the post-WWII period, to examine if they experienced a substantial increase in their trade ratios following major GATT rounds such as the Kennedy Round, or after joining GATT. Our results show that trade ratios of most of these countries exhibited structural breaks in their time paths, however, most of the postbreak paths were below the extrapolated prebreak paths. Furthermore, while the significant break years coincided closely with major regional and international events such as the oil shocks of the 70s and the East-Asian financial crisis in 1997, they occurred far before or after the time of a country's accession to GATT or the time of the major GATT rounds.
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Bibliographic InfoPaper provided by Ben-Gurion University of the Negev, Department of Economics in its series Working Papers with number 239.
Length: 22 pages
Date of creation: Jul 2007
Date of revision:
Publication status: Published in Applied Econometrics and International Development as: Abu-Bader, S. and Abu-Qarn, A. S. (2008) “The Impact of GATT on International Trade: Evidence from Structural Break Analysis”, Applied Econometrics and International Development, 8(2), pages 23-36.
International Trade; Trade Liberalization; Structural Change; Oil Shocks; Kennedy Round; East Asia; Financial Crisis;
Other versions of this item:
- Suleiman ABU-BADER & Aamer S. ABU-QARN, 2008. "The Impact Of Gatt On International Trade: Evidence From Structural Break Analysis," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 8(2), pages 23-36.
- Suleiman Abu-Bader & Aamer S. Abu Qarn, 2007. "The Impact Of Gatt On International Trade: Evidence From Structural Break Analysis," Working Papers 0712, Ben-Gurion University of the Negev, Department of Economics.
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- F1 - International Economics - - Trade
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-08-14 (All new papers)
- NEP-HIS-2007-08-14 (Business, Economic & Financial History)
- NEP-INT-2007-08-14 (International Trade)
- NEP-SEA-2007-08-14 (South East Asia)
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