A Re-Examination of the Effect of GATT/WTO on Trade

Salvador Gil-Pareja, Rafael Llorca-Vivero and José Antonio Martínez-Serrano
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Rafael Llorca-Vivero: University of Valencia
José Antonio Martínez-Serrano: University of Valencia

Open Economies Review, 2016, vol. 27, issue 3, No 7, 584 pages

Abstract: Abstract The empirical literature on the effect of the GATT/WTO on trade provides ambiguous results. This paper sheds new light on this issue by re-examining the ex post (partial) effect of GATT/WTO membership on trade using multiple econometric specifications of the gravity equation and analysing several potential asymmetries of the GATT/WTO system. Our results show an uneven but pervasive evidence that membership in GATT/WTO have had an economically significant effect on members’ bilateral trade. Moreover, we find that the GATT/WTO effect operates through both trade margins but mainly through the intensive margin.

Keywords: GATT; WTO; Trade; Gravity model; Extensive margin; Intensive margin (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s11079-015-9385-5

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