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Trading Profiles and Developing Country Participation in the WTO Dispute Settlement System

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Author Info

  • Francois, Joseph

    (Johannes Kepler University, Linz)

  • Horn, Henrik

    ()
    (Research Institute of Industrial Economics (IFN))

  • Kaunitz, Niklas

    ()
    (Research Institute of Industrial Economics (IFN))

Abstract

It has been alleged since its inception that the WTO Dispute Settlement (DS) mechanism is biased against developing countries, as manifested in e.g. allegedly too low rates of dispute initiation. To shed light on this issue, this study analyses the determinants of developing country participation in the DS system, using bilateral industry-level trade data, and a data set on dispute initiation that is significantly richer than what has been employed in the literature. But the study also points to a number of fundamental conceptual and data problems that beset the whole empirical literature that seeks to draw policy conclusions based on country participation in the DS system. While perhaps appreciated by researchers working in this area, these problems appear to go unnoticed by practitioners drawing on this literature.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 730.

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Length: 75 pages
Date of creation: 31 Jan 2008
Date of revision:
Handle: RePEc:hhs:iuiwop:0730

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Keywords: WTO; Dispute Settlement; Developing Countries; Dispute Initiation;

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References

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  1. Joseph Francois & B. Hoekman & M. Manchin, 2005. "Preference Erosion and Multilateral Trade Liberalization," The Institute for International Integration Studies Discussion Paper Series iiisdp87, IIIS.
  2. Chad P. Bown, 2004. "Developing Countries as Plaintiffs and Defendants in GATT/WTO Trade Disputes," The World Economy, Wiley Blackwell, vol. 27(1), pages 59-80, 01.
  3. Chad P. Bown, 2004. "On the Economic Success of GATT/WTO Dispute Settlement," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 811-823, August.
  4. Blonigen, Bruce A. & Bown, Chad P., 2003. "Antidumping and retaliation threats," Journal of International Economics, Elsevier, vol. 60(2), pages 249-273, August.
  5. Butler, M. & Hauser, H., 2000. "The WTO Dispute Settlement System: A First Assessment from an Economic Perspective," Discussion Paper 2000-21, Tilburg University, Center for Economic Research.
  6. Earl L. Grinols & Roberto Perrelli, 2006. "The WTO Impact on International Trade Disputes: An Event History Analysis," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 613-624, November.
  7. Chad P. Bown, 2005. "Participation in," World Bank Economic Review, World Bank Group, vol. 19(2), pages 287-310.
  8. Horn, Henrik & Mavroidis, Petros C & Nordström, Håkan, 1999. "Is The Use Of The WTO Dispute Settlement System Biased?," CEPR Discussion Papers 2340, C.E.P.R. Discussion Papers.
  9. Guzman, Andrew, 2003. "The Political Economy of Litigation and Settlement at the WTO," Berkeley Olin Program in Law & Economics, Working Paper Series qt4wr4j18z, Berkeley Olin Program in Law & Economics.
  10. Chad P . Bown, 2002. "The Economics of Trade Disputes, the GATT's Article XXIII, and the WTO's Dispute Settlement Understanding," Economics and Politics, Wiley Blackwell, vol. 14(3), pages 283-323, November.
  11. Hoekman , Bernard & Horn, Henrik & Mavroidis, Petros C., 2008. "Winners and Losers in the Panel Stage of the WTO Dispute Settlement System," Working Paper Series 769, Research Institute of Industrial Economics.
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