Is The Use Of The WTO Dispute Settlement System Biased?

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Is The Use Of The WTO Dispute Settlement System Biased?

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Horn, Henrik
Mavroidis, Petros C
Nordström, Håkan

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Henrik Horn

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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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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Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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Louis Kaplow & Steven Shavell, 1999. "Economic Analysis of Law," NBER Working Papers 6960, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Kaplow, Louis & Shavell, Steven, 2002. "Economic analysis of law," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 25, pages 1661-1784 Elsevier. [Downloadable!] (restricted)

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Heinz Hauser & Alexander Roitinger, 2002. "A Renegotiation Perspective on Transatlantic Trade Disputes," University of St. Gallen Department of Economics working paper series 2002 2002-09, Department of Economics, University of St. Gallen. [Downloadable!]
Bown, Chad P., 2005. "Trade remedies and World Trade Organization dispute settlement : Whyare so few challenged?," Policy Research Working Paper Series 3540, The World Bank. [Downloadable!]
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. [Downloadable!]
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. [Downloadable!]
Sebastian Wilckens, 2007. "Should WTO Dispute Settlement Be Subsidized?," Center for European, Governance and Economic Development Research (cege) Discussion Papers 62, Center for European, Governance and Economic Development Research, University of Goettingen (Germany).. [Downloadable!]
Pao-Li Chang, 2002. "The Evolution and Utilization of the GATT/WTO Dispute Settlement Mechanism," Working Papers 475, Research Seminar in International Economics, University of Michigan. [Downloadable!]
Chad P. Bown, 2007. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Working Papers 13349, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
R Read, 2005. "Trade dispute settlement mechanisms: the WTO dispute settlement understanding in the wake of the GATT," Working Papers 002303, Lancaster University Management School, Economics Department. [Downloadable!]
Wilckens, Sebastian, 2007. "Should WTO dispute settlement be subsidized?," Economics working papers 2007,02, Christian-Albrechts-University of Kiel, Department of Economics. [Downloadable!]
Fritz Breuss, 2004. "WTO Dispute Settlement: An Economic Analysis of four EU-US Mini Trade Wars," WIFO Working Papers 231, WIFO. [Downloadable!]

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