IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpit/0512008.html
   My bibliography  Save this paper

International Institutions and Market Expectations: Stock Price Responses to the WTO Ruling on the 2002 U.S. Steel Tariffs

Author

Listed:
  • Nathan M Jensen

    (Washington University)

Abstract

Thanks to Nitsan Chorev, Robert Connolly, David Leblang, Quan Li, Andy Mertha, Layna Mosley, Bumba Mukherjee, Eric Reinhardt, Peter Rosendorff, Matthew Slaughter, Andy Sobel, participants of the 2004 Midwest Political Science Association annual meeting and the 2004 Duke Summer Institute on Globalization and Equity for comments and suggestions. Funding for data collection and interviews with WTO legal affairs staff was provided by the Weidenbaum Center on the Economy, Government, and Public Policy at Washington University and other financial support by the UCLA International Institute.

Suggested Citation

  • Nathan M Jensen, 2005. "International Institutions and Market Expectations: Stock Price Responses to the WTO Ruling on the 2002 U.S. Steel Tariffs," International Trade 0512008, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpit:0512008
    Note: Type of Document - pdf; pages: 44
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/it/papers/0512/0512008.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Pantzalis, Christos & Stangeland, David A. & Turtle, Harry J., 2000. "Political elections and the resolution of uncertainty: The international evidence," Journal of Banking & Finance, Elsevier, vol. 24(10), pages 1575-1604, October.
    2. Martin, Lisa L. & Simmons, Beth A., 1998. "Theories and Empirical Studies of International Institutions," International Organization, Cambridge University Press, vol. 52(4), pages 729-757, October.
    3. Rose, Andrew K., 2004. "Do WTO members have more liberal trade policy?," Journal of International Economics, Elsevier, vol. 63(2), pages 209-235, July.
    4. Krasner, Stephen D., 1982. "Structural causes and regime consequences: regimes as intervening variables," International Organization, Cambridge University Press, vol. 36(2), pages 185-205, April.
    5. Ruggie, John Gerard, 1992. "Multilateralism: the anatomy of an institution," International Organization, Cambridge University Press, vol. 46(3), pages 561-598, July.
    6. Stephen A. Ross, 2013. "The Arbitrage Theory of Capital Asset Pricing," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 1, pages 11-30, World Scientific Publishing Co. Pte. Ltd..
    7. Goldstein, Judith & Martin, Lisa L., 2000. "Legalization, Trade Liberalization, and Domestic Politics: A Cautionary Note," International Organization, Cambridge University Press, vol. 54(3), pages 603-632, July.
    8. Ruggie, John Gerard, 1982. "International regimes, transactions, and change: embedded liberalism in the postwar economic order," International Organization, Cambridge University Press, vol. 36(2), pages 379-415, April.
    9. Leblang, David & Mukherjee, Bumba, 2004. "Presidential Elections and the Stock Market: Comparing Markov-Switching and Fractionally Integrated GARCH Models of Volatility," Political Analysis, Cambridge University Press, vol. 12(3), pages 296-322, July.
    10. Keohane, Robert O. & Moravcsik, Andrew & Slaughter, Anne-Marie, 2000. "Legalized Dispute Resolution: Interstate and Transnational," International Organization, Cambridge University Press, vol. 54(3), pages 457-488, July.
    11. Grieco, Joseph M., 1988. "Anarchy and the limits of cooperation: a realist critique of the newest liberal institutionalism," International Organization, Cambridge University Press, vol. 42(3), pages 485-507, July.
    12. Boardman, Anthony & Vertinsky, Ilan & Whistler, Diana, 1997. "Using information diffusion models to estimate the impacts of regulatory events on publicly traded firms," Journal of Public Economics, Elsevier, vol. 63(2), pages 283-300, January.
    13. Koremenos, Barbara, 2001. "Loosening the Ties that Bind: A Learning Model of Agreement Flexibility," International Organization, Cambridge University Press, vol. 55(2), pages 289-325, April.
    14. M.G. Mathur, 2004. "Multilateral Trade Negotiations," Foreign Trade Review, , vol. 39(1), pages 31-37, April.
    15. T. Clifton Morgan & Kenneth N. Bickers, 1992. "Domestic Discontent and the External Use of Force," Journal of Conflict Resolution, Peace Science Society (International), vol. 36(1), pages 25-52, March.
    16. Rosendorff, B. Peter, 2005. "Stability and Rigidity: Politics and Design of the WTO's Dispute Settlement Procedure," American Political Science Review, Cambridge University Press, vol. 99(3), pages 389-400, August.
    17. Prabhala, N R, 1997. "Conditional Methods in Event Studies and an Equilibrium Justification for Standard Event-Study Procedures," The Review of Financial Studies, Society for Financial Studies, vol. 10(1), pages 1-38.
    18. Robert Z. Lawrence, 2003. "Crimes and Punishments?: Retaliation under the WTO," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 372, January.
    19. Giovanni Maggi, 1999. "The Role of Multilateral Institutions in International Trade Cooperation," American Economic Review, American Economic Association, vol. 89(1), pages 190-214, March.
    20. Burton G. Malkiel, 2003. "The Efficient Market Hypothesis and Its Critics," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 59-82, Winter.
    21. Ross A. Miller, 1999. "Regime Type, Strategic Interaction, and the Diversionary Use of Force," Journal of Conflict Resolution, Peace Science Society (International), vol. 43(3), pages 388-402, June.
    22. Glosten, Lawrence R & Jagannathan, Ravi & Runkle, David E, 1993. "On the Relation between the Expected Value and the Volatility of the Nominal Excess Return on Stocks," Journal of Finance, American Finance Association, vol. 48(5), pages 1779-1801, December.
    23. Gary Clyde Hufbauer & Ben Goodrich, 2003. "Next Move in Steel: Revocation or Retaliation?," Policy Briefs PB03-10, Peterson Institute for International Economics.
    24. Bollerslev, Tim, 1986. "Generalized autoregressive conditional heteroskedasticity," Journal of Econometrics, Elsevier, vol. 31(3), pages 307-327, April.
    25. Burton G. Malkiel, 2003. "The Efficient Market Hypothesis and Its Critics," Working Papers 111, Princeton University, Department of Economics, Center for Economic Policy Studies..
    26. Burton G. Malkiel, 2003. "The Efficient Market Hypothesis and Its Critics," Working Papers 111, Princeton University, Department of Economics, Center for Economic Policy Studies..
    27. Gary Clyde Hufbauer & Ben Goodrich, 2003. "Steel Policy: The Good, the Bad, and the Ugly," Policy Briefs PB03-01, Peterson Institute for International Economics.
    28. Brett Ashley Leeds & David R. Davis, 1997. "Domestic Political Vulnerability and International Disputes," Journal of Conflict Resolution, Peace Science Society (International), vol. 41(6), pages 814-834, December.
    29. Nagpurnanand R. Prabhala, 1997. "Conditional Methods in Event-Studies and an Equilibrium Justification for Standard Event-Study Procedures," Yale School of Management Working Papers ysm55, Yale School of Management.
    30. repec:pri:cepsud:91malkiel is not listed on IDEAS
    31. Moore,Mike, 2003. "A World without Walls," Cambridge Books, Cambridge University Press, number 9780521827010, October.
    32. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, September.
    33. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
    34. Bernhard,William & Leblang,David, 2006. "Democratic Processes and Financial Markets," Cambridge Books, Cambridge University Press, number 9780521861229, October.
    35. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    36. Simmons, Beth A., 2000. "International Law and State Behavior: Commitment and Compliance in International Monetary Affairs," American Political Science Review, Cambridge University Press, vol. 94(4), pages 819-835, December.
    37. Ruggie, John Gerard, 1975. "International responses to technology: Concepts and trends," International Organization, Cambridge University Press, vol. 29(3), pages 557-583, July.
    38. Bagwell, Kyle & Staiger, Robert W., 2004. "Multilateral trade negotiations, bilateral opportunism and the rules of GATT/WTO," Journal of International Economics, Elsevier, vol. 63(1), pages 1-29, May.
    39. Bernhard,William & Leblang,David, 2006. "Democratic Processes and Financial Markets," Cambridge Books, Cambridge University Press, number 9780521678384, October.
    40. Rosendorff, B. Peter & Milner, Helen V., 2001. "The Optimal Design of International Trade Institutions: Uncertainty and Escape," International Organization, Cambridge University Press, vol. 55(4), pages 829-857, October.
    41. McGILLIVRAY, FIONA, 2003. "Redistributive Politics and Stock Price Dispersion," British Journal of Political Science, Cambridge University Press, vol. 33(3), pages 367-395, July.
    42. John R. Freeman & Jude C. Hays & Helmut Stix, 1999. "Democracy and Markets: The Case of Exchange Rates," Working Papers 39, Oesterreichische Nationalbank (Austrian Central Bank).
    43. Dyckman, T & Philbrick, D & Stephan, J, 1984. "A Comparison Of Event Study Methodologies Using Daily Stock Returns - A Simulation Approach," Journal of Accounting Research, Wiley Blackwell, vol. 22, pages 1-30.
    44. Engle, Robert F, 1982. "Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation," Econometrica, Econometric Society, vol. 50(4), pages 987-1007, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fouad Pervez, 2015. "Waiting for election season," The Review of International Organizations, Springer, vol. 10(2), pages 265-303, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chia-Lin Chang & Jukka Ilomäki & Hannu Laurila & Michael McAleer, 2018. "Long Run Returns Predictability and Volatility with Moving Averages," Risks, MDPI, vol. 6(4), pages 1-18, September.
    2. Martin Lausegger, 2021. "Stock markets in turmoil: political institutions and the impact of elections," Economics and Politics, Wiley Blackwell, vol. 33(1), pages 172-204, March.
    3. Stéphane Goutte & David Guerreiro & Bilel Sanhaji & Sophie Saglio & Julien Chevallier, 2019. "International Financial Markets," Post-Print halshs-02183053, HAL.
    4. Saggese, Pietro & Belmonte, Alessandro & Dimitri, Nicola & Facchini, Angelo & Böhme, Rainer, 2023. "Arbitrageurs in the Bitcoin ecosystem: Evidence from user-level trading patterns in the Mt. Gox exchange platform," Journal of Economic Behavior & Organization, Elsevier, vol. 213(C), pages 251-270.
    5. Michele Costola & Massimiliano Caporin, 2016. "Rational Learning For Risk-Averse Investors By Conditioning On Behavioral Choices," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 1-26, March.
    6. Paul Handro & Bogdan Dima, 2024. "Analyzing Financial Markets Efficiency: Insights from a Bibliometric and Content Review," Journal of Financial Studies, Institute of Financial Studies, vol. 16(9), pages 119-175, May.
    7. Sheriffdeen A. Tella & Olumuyiwa G. Yinusa & Ayinde Taofeek Olusola & Saban Celik, 2011. "Global Economic Crisis And Stock Markets Efficiency: Evidence From Selected Africa Countries," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 25(1), pages 139-169.
    8. Yang, Yanlin & Hu, Xuemei & Jiang, Huifeng, 2022. "Group penalized logistic regressions predict up and down trends for stock prices," The North American Journal of Economics and Finance, Elsevier, vol. 59(C).
    9. Fu, Jie & Zhang, Xiaoqi & Zhou, Wenyuan & Lyu, Yang, 2024. "A continuous heterogeneous agent model for multi-asset pricing and portfolio construction under market matching friction," International Review of Economics & Finance, Elsevier, vol. 89(PA), pages 267-283.
    10. Bórawski, Piotr & Bełdycka-Bórawska, Aneta & Szymańska, Elżbieta Jadwiga & Jankowski, Krzysztof Józef & Dunn, James W., 2019. "Price volatility of agricultural land in Poland in the context of the European Union," Land Use Policy, Elsevier, vol. 82(C), pages 486-496.
    11. Jon Wongswan, 2003. "Contagion: an empirical test," International Finance Discussion Papers 775, Board of Governors of the Federal Reserve System (U.S.).
    12. Eva DEZSI & Ioan Alin NISTOR, 2016. "Can Deep Machine Learning Outsmart The Market? A Comparison Between Econometric Modelling And Long- Short Term Memory," Romanian Economic Business Review, Romanian-American University, vol. 11(4.1), pages 54-73, december.
    13. Thomas Bernauer & Anna Kalbhenn & Vally Koubi & Gabriele Spilker, 2013. "Is there a “Depth versus Participation” dilemma in international cooperation?," The Review of International Organizations, Springer, vol. 8(4), pages 477-497, December.
    14. Daniel Martin Katz & Michael J Bommarito II & Tyler Soellinger & James Ming Chen, 2015. "Law on the Market? Abnormal Stock Returns and Supreme Court Decision-Making," Papers 1508.05751, arXiv.org, revised May 2017.
    15. Jukka Ilomäki & Hannu Laurila & Michael McAleer, 2018. "Asymmetric Risk Impacts of Chinese Tourists to Taiwan," Documentos de Trabajo del ICAE 2018-05, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
    16. Chia-Lin Chang & Jukka Ilomäki & Hannu Laurila & Michael McAleer, 2018. "Moving Average Market Timing in European Energy Markets: Production Versus Emissions," Energies, MDPI, vol. 11(12), pages 1-24, November.
    17. Keunbae Ahn, 2021. "Predictable Fluctuations in the Cross-Section and Time-Series of Asset Prices," PhD Thesis, Finance Discipline Group, UTS Business School, University of Technology, Sydney, number 1-2021, January-A.
    18. Aatola, Piia & Ollikka, Kimmo & Ollikainen, Markku, 2012. "Informational Efficiency of the EU ETS market – a study of price predictability and profitable trading," Working Papers 28, VATT Institute for Economic Research.
    19. Majumder, Debasish, 2013. "Towards an efficient stock market: Empirical evidence from the Indian market," Journal of Policy Modeling, Elsevier, vol. 35(4), pages 572-587.
    20. Chia-Lin Chang & Shu-Han Hsu & Michael McAleer, 2018. "An Event Study Analysis of Political Events, Disasters, and Accidents for Chinese Tourists to Taiwan," Sustainability, MDPI, vol. 10(11), pages 1-77, November.

    More about this item

    Keywords

    World Trade Organization; Tariffs; Trade; Steel; Protectionism;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpit:0512008. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.