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Do We Really Know That the WTO Increases Trade? Revisited

  • Kim Myeong Hwan

    ()

    (Indiana University-Purdue University Fort Wayne)

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    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.

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    Article provided by De Gruyter in its journal Global Economy Journal.

    Volume (Year): 11 (2011)
    Issue (Month): 2 (July)
    Pages: 1-21

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    Handle: RePEc:bpj:glecon:v:11:y:2011:i:2:n:4
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