Estimating the Effects of GATT/WTO Membership on Trade Using Staggered Difference-in-Differences Design

Ayumu Tanaka

No kjzyq, SocArXiv from Center for Open Science

Abstract: There has been much debate over the past 20 years about whether accession to the GATT/WTO increases trade for member countries. Previous studies have used estimation methods that do not properly consider that the timing of GATT/WTO accession varies from country to country. This study uses a recently developed staggered difference-in-differences (DiD) estimator to explore the effects of GATT/WTO accession by explicitly accounting for the timing of accession. It finds evidence that GATT/WTO accession significantly increases trade in member countries. The DiD results show that the trade promotion effect of the GATT/WTO GATT/WTO reaches 12.5--25.7% and 21.5--79.5%, 5 and 10 years after both countries' accession.

Date: 2023-11-17
New Economics Papers: this item is included in nep-int and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:kjzyq

DOI: 10.31219/osf.io/kjzyq

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