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The WTO Promotes Trade, Strongly But Unevenly
Author: Shang-Jin Wei and Mr. Arvind Subramanian
Series:
IMF Working Papers
Volume/Issue:
Volume 2003: Issue 185
Language:
English
Publication Date:
01 Sep 2003
DOI:
https://doi.org/10.5089/9781451859430.001
ISBN:
9781451859430
ISSN:
1018-5941
Pages:
41
Keywords:
WP; WTO member; WTO dummy; WTO coefficient; WTO effect; WTO document; WTO; GATT; gravity; special and differential treatment; WTO exporter; WTO variable; Imports; Tariffs; Trade barriers; Customs unions; Trade liberalization; Global; WTO membership; members in the WTO; developing country member
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper furnishes robust evidence that the GATT/WTO 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 40 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 have been asymmetric effects among sectors, with WTO membership associated with substantially greater imports in sectors where barriers are low. These results are consistent with the history and design of the institution, which presided over significant trade liberalization by the industrial countries except in sectors such as food and clothing; largely exempted developing countries from the obligations to liberalize under the principle of special and differential treatment; but attempted to redress the latter by imposing greater obligations on developing country members that joined after the Uruguay Round.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund