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Special and differential treatment in the WTO: Why, when and how?

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  • Keck, Alexander
  • Low, Patrick

Abstract

This paper analyses to which extent domestic institutions affect trade flows. We use two complementary approaches, one focusing on the size of total trade flows and one focusing on bilateral trade patterns (gravity equation). Besides, we control for two other domestic policy variables: trade policy and domestic infrastructure. We find that the quality of institutions has a positive and significant impact on a country's level of openness. Domestic tariffs have no statistically significant impact on their own, but do affect total trade flows when combined with good institutions. Domestic institutions also have a positive and significant impact on bilateral trade flows, but the parameter of our institution variables is reduced by almost a half and may turn insignificant when the quality of domestic infrastructure is included in the regression.

Suggested Citation

  • Keck, Alexander & Low, Patrick, 2004. "Special and differential treatment in the WTO: Why, when and how?," WTO Staff Working Papers ERSD-2004-03, World Trade Organization (WTO), Economic Research and Statistics Division.
    • Handle: RePEc:zbw:wtowps:ersd200403
    DOI: 10.30875/f567d449-en
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    Cited by:

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    2. Draper, Peter & Freytag, Andreas & Doyaili, Sarah Al, 2013. "Why should Sub-Saharan Africa care about the Doha Development Round?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 7, pages 1-26.
    3. Hatice Jenkins & Glenn Jenkins, 2007. "Incidence Of The Wto Anti-discrimination Rules On Corporation Income Taxation," Working Paper 1123, Economics Department, Queen's University.
    4. Mehdi Abbas, 2007. "Les rapports Nord-Sud à l'OMC. Entre différenciation et espace politique pour le développement," Post-Print halshs-00200561, HAL.
    5. Mehdi Abbas, 2007. "Mondialisation, Organisation mondiale du commerce et rapports Nord-Sud : entre différenciation et espace politique pour le développement," Post-Print halshs-00263950, HAL.
    6. Omphemetse S. Sibanda Sr., 2015. "Towards a Revised GATT/WTO Special and Differential Treatment Regime for Least Developed and Developing Countries," Foreign Trade Review, , vol. 50(1), pages 31-40, February.
    7. Irene Musselli, 2016. "Farm Support And Trade Rules:Towards A New Paradigm Under The 2030 Agenda," UNCTAD Blue Series Papers 74, United Nations Conference on Trade and Development.
    8. Häußermann, Johann Jakob, 2017. "Fairness in International Trade Policy: Equality and Differential Treatment in Theory and Practice," EconStor Preprints 170695, ZBW - Leibniz Information Centre for Economics.
    9. Hoekman, Bernard & Ozden, Caglar, 2005. "Trade preferences and differential treatment of developing countries : a selective survey," Policy Research Working Paper Series 3566, The World Bank.
    10. Holmes, Peter & Lopez-Gonzalez, Javier & MILE 02, Anirudh Shingal, 2011. "TRIPS and Special & Differential Treatment – Revisiting the Case for Derogations in Applying Patent Protection for Pharmaceuticals in Developing Count," Papers 238, World Trade Institute.
    11. Katerina Gradeva & Inmaculada Martínez-Zarzoso, 2009. "Trade as Aid: The Role of the EBA-Trade Preferences Regime in the Development Strategy," Ibero America Institute for Econ. Research (IAI) Discussion Papers 197, Ibero-America Institute for Economic Research.
    12. Syed Hasanat SHAH & Hafsa HASNAT* & Sarath DELPACHITRA***, 2019. "Did the WTO Promote Growth, Trade and Foreign Direct Investment in South Asia?," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 29(2), pages 165-179.
    13. Ana Luiza Cortez & Mehmet Arda, 2014. "Global trade rules for supporting development in the post-2015 era," CDP Background Papers 019, United Nations, Department of Economics and Social Affairs.
    14. Gnangnon, Sèna Kimm, 2021. "WTO membership, the membership duration and the utilization of non-reciprocal trade preferences offered by the QUAD Countries," EconStor Preprints 247265, ZBW - Leibniz Information Centre for Economics.
    15. Holmes, Peter & Lopez-Gonzalez, Javier, 2011. "Towards a New Age in Special and Differential Treatment," Papers 239, World Trade Institute.
    16. Éric Millard, 2016. "Teoría General Del Derecho," Books, Universidad Externado de Colombia, Facultad de Derecho, number 833, March.
    17. Mehdi Abbas, 2009. "Mondialisation et développement. Que nous enseigne l'enlisement des négociations commerciales de l'OMC ?," Post-Print halshs-00443793, HAL.
    18. Mehdi Abbas, 2008. "Les rapports Nord-Sud à l'OMC. Entre différenciation et espace politique pour le développement," Post-Print halshs-00217467, HAL.
    19. Mario Matus Baeza & Mark Unger, 2016. "Derecho De La Organización Mundial Del Comercio (Omc)," Books, Universidad Externado de Colombia, Facultad de Derecho, number 834, March.
    20. Yanai, Akiko, 2013. "Rethinking special and differential treatment in the WTO," IDE Discussion Papers 435, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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