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The Evolution and Utilization of the GATT/WTO Dispute

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Author Info
Pao-Li Chang () (School of Economics, Singapore Management University)

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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settlement to explain the surge in blocking incidence of GATT panel reports during the 1980s and the variations in withdrawn incidence versus total disputes across di®erent decades of the GATT regime.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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File URL: https://mercury.smu.edu.sg/rsrchpubupload/10416/wto5.pdf
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Publisher 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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Related research
Keywords: dispute settlement; legal controversy; block; appeal; two-sided asymmetric information; political cost;

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
K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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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. Barry Nalebuff, 1987. "Credible Pretrial Negotiation," RAND Journal of Economics, The RAND Corporation, vol. 18(2), pages 198-210, Summer. [Downloadable!] (restricted)
  2. Monika BÜTLER & Heinz HAUSER, 2000. "The WTO Dispute Settlement System : A First Assessment from an Economic Perspective," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 00.02, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
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  3. I.P.L. P'ng, 1983. "Strategic Behavior in Suit, Settlement, and Trial," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 539-550, Autumn. [Downloadable!] (restricted)
  4. Bebchuk, Lucian Arye, 1988. "Suing Solely to Extract a Settlement Offer," Journal of Legal Studies, University of Chicago Press, vol. 17(2), pages 437-50, June.
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  5. Kara Leitner & Simon Lester, 2006. "WTO Dispute Settlement from 1995 to 2005 -- A Statistical Analysis," Journal of International Economic Law, Oxford University Press, vol. 9(1), pages 219-231, March.
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