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The GATT/WTO has promoted trade, but only in capital-intensive commodities!

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Listed author(s):
  • Hans-Jurgen Engelbrecht
  • Christopher Pearce
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    Abstract

    This article uses gravity models to explore the impact of the General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WHO) on bilateral trade in a sample of 46 countries over the period 1965 to 1997. Our data enable us to disaggregate trade by broad commodity aggregates. The results for total trade are similar to those reported by Rose (2004). However, the disaggregated estimates reveal that the GATT/WTO has had a positive and statistically significant impact on trade in capital-intensive commodities, but no statistically significant impact on trade in other commodities. The article demonstrates that simple modifications of Rose's approach lead to results that are much more 'common sense' than his (JEL F10, F15).

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840600592874
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    Article provided by Taylor & Francis Journals in its journal Applied Economics.

    Volume (Year): 39 (2007)
    Issue (Month): 12 ()
    Pages: 1573-1581

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    Handle: RePEc:taf:applec:v:39:y:2007:i:12:p:1573-1581
    DOI: 10.1080/00036840600592874
    Contact details of provider: Web page: http://www.tandfonline.com/RAEC20

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    Keywords:

    Find related papers by JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F15 - International Economics - - Trade - - - Economic Integration

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    Cited by:

    1. Jason H. Grant & Kathryn A. Boys, 2012. "Agricultural Trade and the GATT/WTO: Does Membership Make a Difference?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 1-24.
    2. Kazunobu Hayakawa & Hyun-Hoon Lee & Donghyun Park, 2014. "Do Export Promotion Agencies Increase Exports?," The Developing Economies, Institute of Developing Economies, vol. 52(3), pages 241-261, 09.
    3. Mujahid, Irfan & Kalkuhl, Matthias, 2015. "Do the WTO and RTAs Promote Food Trade?," 2015 Conference, August 9-14, 2015, Milan, Italy 212509, International Association of Agricultural Economists.
    4. Kazunobu Hayakawa & Fukunari Kimura, 2015. "How Much Do Free Trade Agreements Reduce Impediments to Trade?," Open Economies Review, Springer, vol. 26(4), pages 711-729, September.

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