Which International Institutions Promote International Trade?
This Paper estimates the effect on international trade of three multilateral organizations intended to increase trade: 1) the World Trade Organization (WTO) and its predecessor the Generalized Agreement on Tariffs and Trade (GATT); 2) the International Monetary Fund (IMF); and 3) the Organization for Economic Cooperation and Development (OECD). I use a standard ‘gravity’ model of bilateral merchandise trade and a large panel data set covering over 50 years and 175 countries. My results indicate that OECD membership (but neither GATT/WTO nor IMF membership) has had a consistently large positive effect on trade.
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