Does WTO Membership Increase the Trade Volume? (Erhýht Die Wto-Mitgliedschaft Das Handelsvolumen?)

Posted: 23 Apr 2008 Last revised: 18 May 2009

Date Written: 04.06.2008

Abstract

This paper analyses whether membership in the WTO has increased bilateral trade with Germany or not by a standard gravity model. The analyses uses a panel-data set covering the year 1951 until 1999 and almost 6000 country-pairs. Due to methodological effects a Fixed-Effects-Vector-Decomposition-estimator is used. The results suggest that high-income countries profit more from WTO membership than poor countries and therefore the gains from WTO membership is biased towards the rich and industrial countries.

Keywords: WTO, Gravity model, Panel data, fixed effects vector decomposition

JEL Classification: F 13

Suggested Citation

Westermeier, Andreas, Does WTO Membership Increase the Trade Volume? (Erhýht Die Wto-Mitgliedschaft Das Handelsvolumen?) (04.06.2008). Available at SSRN: https://ssrn.com/abstract=1124399

Andreas Westermeier (Contact Author)

University of Muenster ( email )

Schlossplatz 2
Münster, D-48149
Germany

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