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Is The Use Of The WTO Dispute Settlement System Biased?

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Author Info

  • Horn, Henrik
  • Mavroidis, Petros C
  • Nordström, Håkan

Abstract

The larger trading nations have been the main users of the WTO Dispute Settlement system during its first four years of existence (1995-1998). This has prompted a debate about whether the DS system is biased against smaller and poorer countries, for example, because of a lack of legal capacities and retaliatory power. This paper shows that a simple model in which countries bring disputes proportionally to the diversity and value of exports explains fairly well the dispute pattern. Differences in legal capacities appear to play some role, while 'power' considerations do not seem to matter.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2340.

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Date of creation: Dec 1999
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Handle: RePEc:cpr:ceprdp:2340

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Related research

Keywords: Dispute Settlement; WTO;

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References

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  1. Louis Kaplow & Steven Shavell, 1999. "Economic Analysis of Law," NBER Working Papers 6960, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Francois, Joseph & Horn, Henrik & Kaunitz, Niklas, 2008. "Trading Profiles and Developing Country Participation in the WTO Dispute Settlement System," Working Paper Series 730, Research Institute of Industrial Economics.
  2. Goetz, Christian & Heckelei, Thomas & Rudloff, Bettina, 2008. "What makes countries initiate WTO disputes on food-related issues?," Discussion Papers 56974, University of Bonn, Institute for Food and Resource Economics.
  3. Petros C. Mavroidis & Kyle Bagwell & Robert W. Staiger, 2004. "The case for tradable remedies in WTO dispute settlement," Discussion Papers 0405-05, Columbia University, Department of Economics.
  4. Pao-li Chang, 2007. "The Evolution and Utilization of the GATT/WTO Dispute Settlement Mechanism," Trade Working Papers 22062, East Asian Bureau of Economic Research.
  5. Bown, Chad P. & Hoekman, Bernard, 2007. "Developing Countries and Enforcement of Trade Agreements: Why Dispute Settlement Is Not Enough," CEPR Discussion Papers 6459, C.E.P.R. Discussion Papers.
  6. Chad P. Bown, 2007. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Working Papers 13349, National Bureau of Economic Research, Inc.
  7. Fritz Breuss, 2004. "WTO Dispute Settlement: An Economic Analysis of four EU-US Mini Trade Wars," WIFO Working Papers 231, WIFO.
  8. Chad P. Bown, 2005. "Trade Remedies and World Trade Organization Dispute Settlement: Why Are So Few Challenged?," The Journal of Legal Studies, University of Chicago Press, vol. 34(2), pages 515-555, 06.
  9. Wilckens, Sebastian, 2007. "Should WTO dispute settlement be subsidized?," Economics Working Papers 2007,02, Christian-Albrechts-University of Kiel, Department of Economics.
  10. Wilfred J. Ethier, 2003. "TRIPS, externalities, trade agreements, hostages," PIER Working Paper Archive 03-034, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  11. Sebastian Wilckens, 2007. "Should WTO Dispute Settlement Be Subsidized?," Center for European, Governance and Economic Development Research Discussion Papers 62, University of Goettingen, Department of Economics.

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