Building Trade-Relating Institutions And Wto Accession

The paper aims to examine how trade rules aff ect a much greater array of domestic policies and institutions than ever before. The expanding scope of trade policy places an additional strain on policymaking and institution-building, especially for developing countries. By analysing WTO accession cases, the paper concludes that this process can, under certain conditions, induce countries to establish or improve trade-related institutions. The diff erence-in-diff erence analysis is employed as the empirical model. Results are robust with alternative model specifi cations and choice of economic policies and institutional variable. However, the accession process lacks mechanisms which take account of acceding countries’ diff ering levels of economic development and institutional capacity, placing a heavier burden of implementation policy and institutional reform and related costs on countries with limited human, administrative and fi nancial resources such as LDCs.