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Participation in

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  • Chad P. Bown

Abstract

What affects a country's decision of whether to formally engage in a trade dispute directly related to its exporting interests? This article empirically examines determinants of affected country participation decisions in formal trade litigation arising under the World Trade Organization (wto) between 1995 and 2000. It investigates determinants of nonparticipation and examines whether the incentives generated by the system's rules and procedures discourage active engagement in dispute settlement by developing country members in particular. Though the size of exports at stake is found to be an important economic determinant affecting the decision to participate in challenges to a wto-inconsistent policy, the evidence also shows that measures of a country's retaliatory and legal capacity as well as its international political economy relationships matter. These results are consistent with the hypothesis of an implicit "institutional bias" generated by the system's rules and incentives that particularly affects developing economy participation in dispute settlement. Copyright 2005, Oxford University Press.

Suggested Citation

  • Chad P. Bown, 2005. "Participation in," World Bank Economic Review, World Bank Group, vol. 19(2), pages 287-310.
  • Handle: RePEc:oup:wbecrv:v:19:y:2005:i:2:p:287-310
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    Cited by:

    1. Chad P. Bown, 2005. "Trade Remedies and World Trade Organization Dispute Settlement: Why Are So Few Challenged?," The Journal of Legal Studies, University of Chicago Press, vol. 34(2), pages 515-555, June.
    2. Chau, Nancy H. & Färe, Rolf, 2011. "Shadow pricing market access: A trade benefit function approach," Journal of Economic Theory, Elsevier, vol. 146(4), pages 1631-1663, July.
    3. Bown, Chad P. & Hoekman, Bernard, 2007. "Developing Countries and Enforcement of Trade Agreements: Why Dispute Settlement Is Not Enough," CEPR Discussion Papers 6459, C.E.P.R. Discussion Papers.
    4. Reynaud, Julien & Vauday, Julien, 2009. "Geopolitics and international organizations: An empirical study on IMF facilities," Journal of Development Economics, Elsevier, vol. 89(1), pages 139-162, May.
    5. Horn, Henrik & Mavroidis, Petros C., 2006. "A Survey of the Literature on the WTO Dispute Settlement System," Working Paper Series 684, Research Institute of Industrial Economics.
    6. Francois, Joseph & Horn, Henrik & Kaunitz, Niklas, 2008. "Trading Profiles and Developing Country Participation in the WTO Dispute Settlement System," Working Paper Series 730, Research Institute of Industrial Economics.
    7. Vatn, Arild, 2010. "An institutional analysis of payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1245-1252, April.
    8. Götz, Christian & Heckelei, Thomas & Rudloff, Bettina, 2010. "What makes countries initiate WTO disputes on food-related issues?," Food Policy, Elsevier, vol. 35(2), pages 154-162, April.
    9. Humphreys, Brad & Lee, Yang Seung & Soebbing, Brian, 2009. "Consumer Behaviour in Lotto Markets: The Double Hurdle Approach and Zeros in Gambling Survey Data," Working Papers 2009-27, University of Alberta, Department of Economics.
    10. Clark, J. Stephen & Thibodeau, David R. & Grant, K. Gary & Prochazkova, Katerina, 2008. "Disease Outbreaks and Agricultural Trade: The Case of Potatoes," Working Papers 43464, Canadian Agricultural Trade Policy Research Network.
    11. Wilckens, Sebastian, 2007. "Should WTO dispute settlement be subsidized?," Economics Working Papers 2007-02, Christian-Albrechts-University of Kiel, Department of Economics.
    12. Johannes Urpelainen, 2009. "Political-economic problems in trade capacity building," The Review of International Organizations, Springer, vol. 4(4), pages 329-359, December.
    13. Goetz, Christian & Heckelei, Thomas, 2009. "The determinants of bilateral World Trade Organization disputes in the agro-food sector," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49461, Agricultural and Applied Economics Association.
    14. Chad P. Bown, 2010. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Chapters,in: China's Growing Role in World Trade, pages 281-337 National Bureau of Economic Research, Inc.

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