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The WTO Promotes Trade, Strongly But Unevenly

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Author Info
Arvind Subramanian
Shang-Jin Wei

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Abstract

Contrary to the recent literature that concludes that the GATT/WTO has been completely ineffective in promoting world trade, this paper furnishes robust evidence that the institution has had a powerful and positive impact on trade. The impact has, however, been uneven. GATT/WTO membership for industrial countries has been associated with a large increase in imports estimated at about 44 percent of world trade. The same has not been true for developing country members, although those that joined after the Uruguay Round have benefited from increased imports. Similarly, there has been an asymmetric impact between sectors. These results are consistent with the history and design of the institution.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10024.

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Date of creation: Oct 2003
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Handle: RePEc:nbr:nberwo:10024

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F1 - International Economics - - Trade

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References listed on IDEAS
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.:
  1. Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR, CES, MSH, vol. 15(30), pages 7-46, 04. [Downloadable!] (restricted)
  2. Arvind Subramanian & Shang-Jin Wei, 2003. "The WTO Promotes Trade, Strongly But Unevenly," NBER Working Papers 10024, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Rose, Andrew K, 2002. "Do We Really Know that the WTO Increases Trade?," CEPR Discussion Papers 3538, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Jeffrey A. Frankel & David Romer, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June. [Downloadable!] (restricted)
  5. repec:rus:hseeco:123147 is not listed on IDEAS
  6. Aaditya Mattoo & Devesh Roy & Arvind Subramanian, 2003. "The Africa Growth and Opportunity Act and its Rules of Origin: Generosity Undermined?," The World Economy, Blackwell Publishing, vol. 26(6), pages 829-851, 06. [Downloadable!] (restricted)
    Other versions:
  7. Bagwell, Kyle & Staiger, Robert W., 2004. "Multilateral trade negotiations, bilateral opportunism and the rules of GATT/WTO," Journal of International Economics, Elsevier, vol. 63(1), pages 1-29, May. [Downloadable!] (restricted)
    Other versions:
  8. Panagariya, Arvind & Rodrik, Dani, 1993. "Political-Economy Arguments for a Uniform Tariff," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(3), pages 685-703, August. [Downloadable!] (restricted)
    Other versions:
  9. Wolf, Martin, 1987. "Differential and More Favorable Treatment of Developing Countries and the International Trading System," World Bank Economic Review, Oxford University Press, vol. 1(4), pages 647-68, September.
  10. Torsten Persson, 2001. "Currency unions and trade: how large is the treatment effect?," Economic Policy, CEPR, CES, MSH, vol. 16(33), pages 433-462, October. [Downloadable!] (restricted)
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  12. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-16, March. [Downloadable!] (restricted)
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Cited by:
(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.)

  1. Hoekmanm Bernard M. & Bown, Chad P., 2007. "Developing countries and enforcement of trade agreements : why dispute settlement is not enough," Policy Research Working Paper Series 4450, The World Bank. [Downloadable!]
  2. Witold J. Henisz & Edward D. Mansfield, 2004. "Votes and Vetoes: The Political Determinants of Commercial Openness," William Davidson Institute Working Papers Series 2004-712, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  3. Gabriel J. Felbermayr & Wilhelm Kohler, 2007. "Does WTO Membership Make a Difference at the Extensive Margin of World Trade?," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  4. Rose, Andrew K, 2003. "A Meta-Analysis of the Effect of Common Currencies on International Trade," CEPR Discussion Papers 4341, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Elisa Gamberoni, . "Do unilateral trade preferences help export diversification? An investigation of the impact of European unilateral trade preferences on the extensive and intensive margin of trade," HEI Working Papers 17-2007, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
  6. Li-Gang Liu, 2005. "The Impact of Financial Services Trade Liberalization on China," Discussion papers 05024, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  7. 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. [Downloadable!] (restricted)
  8. Martin, Philippe & Mayer, Thierry & Thoenig, Mathias, 2005. "Make Trade not War?," CEPR Discussion Papers 5218, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  9. Dani Rodrik & Arvind Subramanian, 2004. "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition," NBER Working Papers 10376, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  10. Gloria O. Pasadilla, 2006. "Preferential Trading Agreements and Agricultural Liberalization in East and Southeast Asia," Working Papers 1106, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada.. [Downloadable!]
  11. Subramanian, Arvind & Wei, Shang-Jin, 2005. "The WTO Promotes Trade, Strongly But Unevenly," CEPR Discussion Papers 5122, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  12. Suleiman Abu-Bader & Aamer Abu-Qarn, 2007. "The Impact of GATT on International Trade: Evidence from Structural Break Analysis," Working Papers 239, Ben-Gurion University of the Negev, Department of Economics. [Downloadable!]
  13. Pasadilla, Gloria, 2006. "Preferential Trading Agreements and Agricultural Liberalization in East and Southeast Asia," Discussion Papers DP 2006-02, Philippine Institute for Development Studies. [Downloadable!]
  14. Shang-Jin Wei & Zhiwei Zhang, 2006. "Do External Interventions Work? The Case of Trade Reform Conditions in IMF Supported Programs," NBER Working Papers 12667, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Gabriel J. Felbermayr & Wilhelm Kohler, 2006. "Exploring the Intensive and Extensive Margins of World Trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(4), pages 642-674, December. [Downloadable!] (restricted)
    Other versions:
  16. Bogdan Lissovolik & Yaroslav Lissovolik, 2006. "Russia and the WTO: The "Gravity" of Outsider Status," IMF Staff Papers, Palgrave Macmillan Journals, vol. 53(1), pages 1. [Downloadable!] (restricted)
  17. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2006. "Trading Partners and Trading Volumes," DEGIT Conference Papers c011_022, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  18. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2007. "Estimating Trade Flows: Trading Partners and Trading Volumes," NBER Working Papers 12927, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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