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Do We Really Know That the WTO Increases Trade? Revisited

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  • Kim Myeong Hwan

    () (Indiana University-Purdue University Fort Wayne)

Abstract

In this study, we revisit a recent study that examined the role of GATT/WTO membership on trade flows. With this aim, we re-examine Rose (2004a)s study and extend the data until 2007. Furthermore, we alternatively estimate the role of the organization, GATT/WTO, on trade by including more control variables that are believed to influence bilateral trade such as a defense pact (military alliance), military disputes, joint democracy and policy similarity. Empirical results clearly demonstrate that GATT/WTO membership does have a significant positive effect on trade.

Suggested Citation

  • Kim Myeong Hwan, 2011. "Do We Really Know That the WTO Increases Trade? Revisited," Global Economy Journal, De Gruyter, vol. 11(2), pages 1-21, July.
  • Handle: RePEc:bpj:glecon:v:11:y:2011:i:2:n:4
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    References listed on IDEAS

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    1. repec:cup:apsrev:v:83:y:1989:i:02:p:465-480_08 is not listed on IDEAS
    2. Subramanian, Arvind & Wei, Shang-Jin, 2007. "The WTO promotes trade, strongly but unevenly," Journal of International Economics, Elsevier, vol. 72(1), pages 151-175, May.
    3. Rose, Andrew K., 2004. "Do WTO members have more liberal trade policy?," Journal of International Economics, Elsevier, vol. 63(2), pages 209-235, July.
    4. Andrew G. Long & Brett Ashley Leeds, 2006. "Trading for Security: Military Alliances and Economic Agreements," Journal of Peace Research, Peace Research Institute Oslo, vol. 43(4), pages 433-451, July.
    5. Andrew G. Long, 2003. "Defense Pacts and International Trade," Journal of Peace Research, Peace Research Institute Oslo, vol. 40(5), pages 537-552, September.
    6. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
    7. Michael Tomz & Judith L. Goldstein & Douglas Rivers, 2007. "Do We Really Know That the WTO Increases Trade? Comment," American Economic Review, American Economic Association, vol. 97(5), pages 2005-2018, December.
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