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A Re-Examination of the Effect of GATT/WTO on Trade

Author

Listed:
  • Salvador Gil-Pareja

    () (University of Valencia)

  • Rafael Llorca-Vivero

    (University of Valencia)

  • José Antonio Martínez-Serrano

    (University of Valencia)

Abstract

Abstract The empirical literature on the effect of the GATT/WTO on trade provides ambiguous results. This paper sheds new light on this issue by re-examining the ex post (partial) effect of GATT/WTO membership on trade using multiple econometric specifications of the gravity equation and analysing several potential asymmetries of the GATT/WTO system. Our results show an uneven but pervasive evidence that membership in GATT/WTO have had an economically significant effect on members’ bilateral trade. Moreover, we find that the GATT/WTO effect operates through both trade margins but mainly through the intensive margin.

Suggested Citation

  • Salvador Gil-Pareja & Rafael Llorca-Vivero & José Antonio Martínez-Serrano, 2016. "A Re-Examination of the Effect of GATT/WTO on Trade," Open Economies Review, Springer, vol. 27(3), pages 561-584, July.
  • Handle: RePEc:kap:openec:v:27:y:2016:i:3:d:10.1007_s11079-015-9385-5
    DOI: 10.1007/s11079-015-9385-5
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    References listed on IDEAS

    as
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    Cited by:

    1. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Antonio Martínez-Serrano, 2018. "Reciprocal vs nonreciprocal trade agreements: which have been best to promote exports?," Working Papers 1802, Department of Applied Economics II, Universidad de Valencia.

    More about this item

    Keywords

    GATT; WTO; Trade; Gravity model; Extensive margin; Intensive margin;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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