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The WTO Promotes Trade, Strongly But Unevenly

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  • Arvind Subramanian
  • Shang-Jin Wei

Abstract

Contrary to the recent literature that concludes that the GATT/WTO has been completely ineffective in promoting world trade, this paper furnishes robust evidence that the institution has had a powerful and positive impact on trade. The impact has, however, been uneven. GATT/WTO membership for industrial countries has been associated with a large increase in imports estimated at about 44 percent of world trade. The same has not been true for developing country members, although those that joined after the Uruguay Round have benefited from increased imports. Similarly, there has been an asymmetric impact between sectors. These results are consistent with the history and design of the institution.

Suggested Citation

  • Arvind Subramanian & Shang-Jin Wei, 2003. "The WTO Promotes Trade, Strongly But Unevenly," NBER Working Papers 10024, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:10024
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    References listed on IDEAS

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    JEL classification:

    • F1 - International Economics - - Trade

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