Publication Type
Journal Article
Version
acceptedVersion
Publication Date
9-2011
Abstract
This paper re-examines the GATT/WTO membership effect on bilateral trade flows, 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 misspecification bias, allows general forms of heterogeneous membership effects, and addresses potential hidden selection bias. This is in contrast to most conventional parametric studies on this issue. Our results suggest large GATT/WTO trade-promoting effects that are robust to various restricted matching criteria, alternative GATT/WTO indicators, non-random incidence of positive trade flows, inclusion of multilateral resistance terms, and different matching methodologies.
Keywords
Trade flow, Treatment effect, Matching, Permutation test, Signedrank test, Sensitivity analysis
Discipline
International Economics
Research Areas
International Economics
Publication
Journal of International Economics
Volume
85
Issue
1
First Page
53
Last Page
71
ISSN
0022-1996
Identifier
10.1016/j.jinteco.2011.05.011
Publisher
Elsevier
Citation
CHANG, Pao Li and LEE, Myoung-Jae.
The WTO Trade Effect. (2011). Journal of International Economics. 85, (1), 53-71.
Available at: https://ink.library.smu.edu.sg/soe_research/1373
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jinteco.2011.05.011