The WTO Promotes Trade, Strongly But Unevenly
By Arvind Subramanian, Shang-jin Wei. Social Science Research Network, 2003
902 citations recorded by the source corpus.
Contrary to the recent literature that concludes that the GATT/WTO has been completely ineffective in promoting world trade, this paper furnishes robust evidence that the institution has had a powerful and positive impact on trade. The impact has, however, been uneven. GATT/WTO membership for industrial countries has been associated with a large increase in imports estimated at about 44 percent of world trade. The same has not been true for developing country members, although those that joined after the Uruguay Round have benefited from increased imports. Similarly, there has been an asymmetric impact between sectors. These results are consistent with the history and design of the institution.
Subfields: Economics and Econometrics, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/71d113b3df37c628d95c2a2102f940f2fb2416b2
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Economics and Econometrics
- Mario Larch
- Yoto V. Yotov
- H. Garretsen
- H. Vandenbussche
- E. Helpman
- In Song Kim
- S. Brakman
- Thierry Mayer
In Strategy and Management
- Mario Larch
- E. Helpman
- In Song Kim
- H. Vandenbussche
- H. Garretsen
- Yoto V. Yotov
- Yona Rubinstein
- Benedikt Heid
Citations in the corpus
- Do environmental provisions in trade agreements make exports from developing countries greener? (2020, background): “For instance, in the Doha negotiations, the members of the so-called ‘‘Friends Group” developed a list of 154 products (WTO, 2009).”
- Do Trade Agreements Stimulate International Trade Differently? Evidence from 296 Trade Agreements (2013, positive): “(Felbermayr and Kohler, 2006; Subramanian and Wei, 2007; Tomz, Goldstein and Rivers, 2007; Liu, 2009; Chang and Lee, 2011; Herz and Wagner, 2011).”
- When Should We Use Unit Fixed Effects Regression Models for Causal Inference with Longitudinal Data? (2019, background): “Indeed, Subramanian and Wei (2007) find substantial heterogeneity in the effects of GATT/WTO on trade.”
- The chilling trade effects of antidumping proliferation (2010, background): “This implies that developing countries had to make more concessions in terms of lowering their tariffs (Subramanian and Wei, 2007), which may increase their willingness to adopt contingent protection laws like AD.”
- Tariff binding and overhang: Theory and evidence (2015, neutral): “Our empirical study also sheds light on Subramanian and Weis (2007) nding that membership in the WTO increases a countrys import volume substantially only if the member under consideration is a developed country.”
- In search of WTO trade effects: Preferential trade agreements promote trade strongly, but unevenly (2011, positive): “Our analysis highlights, that previously diverging results regarding WTO effects on bilateral trade flows (most prominently in Rose, 2004, 2005; Subramanian and Wei, 2007; and Tomz, Goldstein and Rivers, 2007) may have been generated by omitted variable bias.”
- From “Hindu Growth” to Productivity Surge: The Mystery of the Indian Growth Transition (2004, neutral): “Source: Based on data in Subramanian and Wei (2003). Table 7.”
- Trade does promote peace: New simultaneous estimates of the reciprocal effects of trade and conflict (2010, background): “Commerce promotes peace because violence has substantial costs, whether these are paid prospectively or contemporaneously.”