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The Impact of International Institutions on Bilateral Trade: Economic and Political

Listed author(s):
  • Kim Myeong Hwan

    ()

    (Indiana University-Purdue University Fort Wayne)

  • Kim Dongsoo

    ()

    (University of Georgia)

  • Han Yongseung

    ()

    (University of Georgia)

This study aims to contribute to drawing a more complete picture of the role of multilateral economic and political institutions. Particularly, we pursue answers to questions such as how much influence participation in multilateral trade arrangements and military alliance has on bilateral trade of the states involved. Our results show that political institutions, set apart from trade issues, do affect bilateral trade--even though these effects are demonstrably smaller than those that occur within economic institutions. Military disputes between two states are sure to decrease bilateral trade, while joint democracy and policy similarity between two states, although moderate, increase bilateral trade, but military alliance is indeterminate.

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File URL: https://www.degruyter.com/view/j/gej.2008.8.4/gej.2008.8.4.1423/gej.2008.8.4.1423.xml?format=INT
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Article provided by De Gruyter in its journal Global Economy Journal.

Volume (Year): 8 (2008)
Issue (Month): 4 (December)
Pages: 1-22

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Handle: RePEc:bpj:glecon:v:8:y:2008:i:4:n:3
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  1. 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.
  2. 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.
  3. Andrew G. Long, 2003. "Defense Pacts and International Trade," Journal of Peace Research, Peace Research Institute Oslo, vol. 40(5), pages 537-552, September.
  4. 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.
  5. Goldstein, Judith L. & Rivers, Douglas & Tomz, Michael, 2007. "Institutions in International Relations: Understanding the Effects of the GATT and the WTO on World Trade," International Organization, Cambridge University Press, vol. 61(01), pages 37-67, January.
  6. Douglas M. Gibler & Meredith Reid Sarkees, 2004. "Measuring Alliances: the Correlates of War Formal Interstate Alliance Dataset, 1816–2000," Journal of Peace Research, Peace Research Institute Oslo, vol. 41(2), pages 211-222, March.
  7. Scott L. Kastner, 2007. "When Do Conflicting Political Relations Affect International Trade?," Journal of Conflict Resolution, Peace Science Society (International), vol. 51(4), pages 664-688, August.
  8. 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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