Does WTO-Membership Have First-Mover-Advantages

19 Pages Posted: 29 Apr 2008 Last revised: 5 Jun 2008


In this paper we analyze whether the number of neighbour countries and the ratio of neighbour countries whhich are already a member of the WTO have an effect on bilateral between OECD- and Non-OECD-countries. For this analysis we used a fixed-effect-vector-decomposition estimator to face the problems that occur by having panel-data-set and time-invariant variables. The results are not clear. The results are pretty clear. The effect of RaNC is positive for countries which are already members of the WTO and negative for countries which still stay outside the WTO. In all cases the effects are significant.

Keywords: WTO, Gravity-Model, Fixed Effects Vector Decomposition, Panel Data

JEL Classification: F13

Suggested Citation

Westermeier, Andreas, Does WTO-Membership Have First-Mover-Advantages. Available at SSRN: or

Andreas Westermeier (Contact Author)

University of Muenster ( email )

Schlossplatz 2
M√ľnster, D-48149

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