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Do We Really KNow that the WTO Increases Trade?

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  • Andrew K. Rose

    (University of California, Berkeley
    NBER and CEPR)

Abstract

This paper estimates the effect on international trade of multilateral trade agreements: the World Trade Organization (WTO), its predecessor the Generalized Agreement on Tariffs and Trade (GATT), and the Generalized System of Preferences (GSP) extended from rich countries to developing countries. I use a standard "gravity" model of bilateral merchandise trade and a large panel data set covering over 50 years and 175 countries. An extensive search reveals little evidence that countries joining or belonging to the GATT/WTO have different trade patterns than outsiders. The GSP does seem to have a strong effect, and is associated with an approximate doubling of trade.

Suggested Citation

  • Andrew K. Rose, 2002. "Do We Really KNow that the WTO Increases Trade?," Working Papers 182002, Hong Kong Institute for Monetary Research.
  • Handle: RePEc:hkm:wpaper:182002
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    empirical; bilateral; panel; gravity; GATT; GSP; international; multilateral; panel;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration

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