The WTO Trade Effect

The WTO Trade Effect

This paper reexamines 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 biases, allow...

Full description

Saved in:
Bibliographic Details
Main Authors: CHANG, Pao Li, LEE, Myoung-Jae
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2010
Subjects:
Trade flow
Treatment effect
Matching
Permutation test
Signed-rank test
Sensitivity analysis.
International Business
International Economics
Online Access:https://ink.library.smu.edu.sg/soe_research/1249
https://ink.library.smu.edu.sg/context/soe_research/article/2248/viewcontent/WTOeffect2010.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English
Description
Summary:This paper reexamines 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 biases, allows general forms of heterogeneous treatment effects, and addresses potential hidden selection biases. This is in contrast to most conventional parametric studies on this issue. Our results suggest large GATT/WTO trade-promoting effects, robust to various restricted matching criteria, alternative indicators for GATT/WTO involvement, different matching methodologies, non-random incidence of positive trade flows, and inclusion of multilateral resistance terms.

Similar Items