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What Does WTO Membership Kindle in Transition Economies?: An Empirical Investigation


  • F. Campos, Nauro

    () (University of Newcastle)


Many believe that an important benefit from membership in international organizations is the lessening of political constraints to domestic reforms which would, ultimately, generate greater trade openness, FDI inflows and economic growth. These ideas have received limited empirical testing. This paper tries to fill this gap using panel data for 25 transition economies during the 1990s. We find that WTO membership had little impact on trade openness, FDI and growth, but a positive effect on domestic reform (external liberalization). Unfortunately, we can not yet distinguish whether this effect is real or due to the poor measurement of reform.

Suggested Citation

  • F. Campos, Nauro, 2004. "What Does WTO Membership Kindle in Transition Economies?: An Empirical Investigation," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 19, pages 395-415.
  • Handle: RePEc:ris:integr:0281

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    References listed on IDEAS

    1. Jörg Mayer & Arunas Butkevicius & Ali Kadri & Juan Pizarro, 2004. "Dynamic products in world exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(3), pages 762-795, September.
    2. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
    3. Finger, J. Michael & Reincke, Ulrich & Castro, Adriana, 1999. "Market access bargaining in the Uruguay Round - Rigid or relaxed reciprocity?," Policy Research Working Paper Series 2258, The World Bank.
    4. Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
    5. Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2001. "Patterns and determinants of international fragmentation of production: Evidence from outward processing trade between the EU and Central Eastern European countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 80-104, March.
    6. Wood, Adrian & Mayer, Jorg, 2001. "Africa's Export Structure in a Comparative Perspective," Cambridge Journal of Economics, Oxford University Press, vol. 25(3), pages 369-394, May.
    7. Finger, J. Michael & Schuknecht, Ludger, 1999. "Market access advances and retreats : the Uruguay Round and beyond," Policy Research Working Paper Series 2232, The World Bank.
    8. Baier, Scott L. & Bergstrand, Jeffrey H., 2001. "The growth of world trade: tariffs, transport costs, and income similarity," Journal of International Economics, Elsevier, vol. 53(1), pages 1-27, February.
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    Cited by:

    1. Pomfret, Richard, 2005. "Trade policies in Central Asia after EU enlargement and before Russian WTO accession: Regionalism and integration into the world economy," Economic Systems, Elsevier, vol. 29(1), pages 32-58, March.

    More about this item


    WTO; Economic reform; Transition economies;

    JEL classification:

    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • P33 - Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid


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