The ‘Real’ Impact of GATT/WTO – A Generalised Approach
University of Bayreuth
University of Bayreuth - Faculty of Law, Business and Economics
The World Economy, Vol. 34, Issue 6, pp. 1014-1041, 2011
Rose’s result in 2004 that GATT/WTO has no significant impact on bilateral trade triggered off a series of empirical studies. Each of those studies augments Rose’s paper in one specific methodological aspect with the general finding that GATT/WTO significantly fosters members’ trade, although the estimated impact varies between 2 per cent and 195 per cent of trade creation. We combine the methodological contributions of previous studies to overcome these isolated approaches, to account for possible interactions and to develop a more general view on the impact of GATT/WTO. In particular, we find that GATT/WTO promotes members’ trade by around 86 per cent.
Number of Pages in PDF File: 28
Date posted: June 22, 2011