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The WTO trade effect

Pao-Li Chang () and Myoung-jae Lee

Journal of International Economics, 2011, vol. 85, issue 1, 53-71

Abstract: This paper re-examines the GATT/WTO membership effect on bilateral trade flows, using nonparametric methods including pair-matching, permutation tests, and a Rosenbaum (2002) sensitivity analysis. Together, these methods provide an estimation framework that is robust to misspecification bias, allows general forms of heterogeneous membership effects, and addresses potential hidden selection bias. This is in contrast to most conventional parametric studies on this issue. Our results suggest large GATT/WTO trade-promoting effects that are robust to various restricted matching criteria, alternative GATT/WTO indicators, non-random incidence of positive trade flows, inclusion of multilateral resistance terms, and different matching methodologies.

Keywords: Trade; flow; Treatment; effect; Matching; Permutation; test; Signed-rank; test; Sensitivity; analysis (search for similar items in EconPapers)
Date: 2011
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Related works:
Working Paper: The WTO Trade Effect (2010) Downloads
Working Paper: The WTO Trade Effect (2008) Downloads
Working Paper: The WTO Trade Effect (2007) Downloads
Working Paper: The WTO Trade Effect (2007) Downloads
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