2010•Journal of International Trade & Economic DevelopmentRequires access

Does the WTO promote trade? Further evidence

Myeong Hwan Kim

Open publisher page 12 citations

Abstract

In a recent notable paper, Rose (2004a Rose, A. K. 2004a. Do we really know that the WTO increases trade?. American Economic Review, 94(1): 98–114. [Crossref], [Web of Science ®] , [Google Scholar]) finds no evidence that membership in the GATT/WTO increases trade. However, to evaluate accurately the role of the trade organization on trade promotion, only trade in commodities and sectors that are actually under the influence of that organization should be taken into account. Therefore, in this study, we exclude agriculture, textile and oil trade from consideration, as they are not dealt with under GATT/WTO rules; as a result, the benefit of the GATT/WTO's promotional efforts is pronounced, increasing trade by approximately 30% for member countries.

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What this paper is about

In a recent notable paper, Rose (2004a Rose, A. K. 2004a. Do we really know that the WTO increases trade?. American Economic Review, 94(1): 98–114. [Crossref], [Web of Science ®] , [Google Scholar]) finds no evidence that membership in the GATT/WTO increases trade. However, to evaluate accurately the role of the trade organization on trade promotion, only trade in commodities and sectors that are actually under the influence of that organization should be taken into account. Therefore, in this study, we exclude agriculture, textile and oil trade from consideration, as they are not dealt with under GATT/WTO rules; as a result, the benefit of the GATT/WTO's promotional efforts is pronounced, increasing trade by approximately 30% for member countries.

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Available abstract

In a recent notable paper, Rose (2004a Rose, A. K. 2004a. Do we really know that the WTO increases trade?. American Economic Review, 94(1): 98–114. [Crossref], [Web of Science ®] , [Google Scholar]) finds no evidence that membership in the GATT/WTO increases trade. However, to evaluate accurately the role of the trade organization on trade promotion, only trade in commodities and sectors that are actually under the influence of that organization should be taken into account. Therefore, in this study, we exclude agriculture, textile and oil trade from consideration, as they are not dealt with under GATT/WTO rules; as a result, the benefit of the GATT/WTO's promotional efforts is pronounced, increasing trade by approximately 30% for member countries.

Key concepts: International trade, World trade, Economics, International economics, Trade barrier, Promotion (chess), Agriculture, Commercial policy

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