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Is The Use Of The WTO Dispute Settlement System Biased?

Author

Listed:
  • Horn, Henrik
  • Mavroidis, Petros C
  • Nordström, Håkan

Abstract

The larger trading nations have been the main users of the WTO Dispute Settlement system during its first four years of existence (1995-1998). This has prompted a debate about whether the DS system is biased against smaller and poorer countries, for example, because of a lack of legal capacities and retaliatory power. This paper shows that a simple model in which countries bring disputes proportionally to the diversity and value of exports explains fairly well the dispute pattern. Differences in legal capacities appear to play some role, while 'power' considerations do not seem to matter.

Suggested Citation

  • Horn, Henrik & Mavroidis, Petros C & Nordström, Håkan, 1999. "Is The Use Of The WTO Dispute Settlement System Biased?," CEPR Discussion Papers 2340, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:2340
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    References listed on IDEAS

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    1. Kaplow, Louis & Shavell, Steven, 2002. "Economic analysis of law," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 25, pages 1661-1784, Elsevier.
    2. Mavroidis, Petros C & Zdouc, Werner, 1998. "Legal Means to Protect Private Parties' Interests in the WTO: The Case of the EC New Trade Barriers Regulation," Journal of International Economic Law, Oxford University Press, vol. 1(3), pages 407-432, September.
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    Keywords

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    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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