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The Evolution and Utilization of the GATT/WTO Dispute

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  • Pao-Li Chang

    ()
    (School of Economics, Singapore Management University)

Abstract

This paper provides a theoretical framework of dispute settlement to explain the surge in blocking incidence of GATT panel reports during the 1980s and the variations in withdrawn incidence versus total disputes across di®erent decades of the GATT regime. The study first suggests the role of the degree of legal controversy over a panel ruling in determining countries' incentives to block (appeal) a panel report under the GATT (WTO) regime. The study then analyzes the effects of political power on countries' incentives to use, and their interactions in using, the dispute settlement mechanism, when two-sided asymmetric information exists regarding panel judgement.

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Bibliographic Info

Paper provided by Singapore Management University, School of Economics in its series Working Papers with number 21-2007.

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Length: 30 pages
Date of creation: Jul 2007
Date of revision:
Publication status: Published in SMU Economics and Statistics Working Paper Series
Handle: RePEc:siu:wpaper:21-2007

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Keywords: dispute settlement; legal controversy; block; appeal; two-sided asymmetric information; political cost;

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