The WTO trade effect
By Pao-Li Chang, Myoung‐jae Lee. 2011
162 citations recorded by the source corpus.
This paper reexamines the GATT/WTO membership efiect on bilateral trade ∞ows, 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 misspeciflcation biases, allows general forms of heterogeneous treatment efiects, and addresses potential hidden selection biases. This is in contrast to most conventional parametric studies on this issue. Our results suggest large GATT/WTO trade-promoting efiects, robust to various restricted matching criteria, alternative indicators for GATT/WTO involvement, different matching methodologies, non-random incidence of positive trade ∞ows, and inclusion of multilateral resistance terms.
Subfields: Economics and Econometrics, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/6991d073b3ebee27cf224ed82abd28752addd49b
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In Economics and Econometrics
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Citations in the corpus
- Capital misallocation in China: Financial frictions or policy distortions? (2018, background): “It also started to appear in many other areas of economics, such as international economics (Chang and Lee, 2011), monetary economics (Angrist and Kuersteiner, 2011) and nancial economics (Campello et al., 2010).”
- Do Trade Agreements Stimulate International Trade Differently? Evidence from 296 Trade Agreements (2013, unknown): “In subsequent research, and by using different data sets and different econometric techniques and dealing with the ‘zero’ trade flows problem, the findings of Rose (2004) have been modified, and the consensus seems that the WTO effect on international trade is positive as is assumed a priori (see Su”
- Is the WTO Passé (2015, unknown): “…e¤ects of GATT/WTO membership are restricted primarily to developed countries has subsequently been con rmed by a number of papers (see, for example, Chang and Lee, 2011, Eicher and Henn, 2011, and Dutt, Mihov and Van Zandt, 2013, though Eicher and Henn attribute to PTAs most of the trade e¤ects…”