Trade and the WTO
By Arnold Kling
Andrew Rose has a paper entitled, Do We Really Know that the WTO Increases Trade?. His succinct Executive Summary: “No.”
It turns out that membership in the GATT/WTO is not associated with substantially enhanced trade, once standard factors have been taken into account. To be more precise, countries acceding or belonging to the GATT/WTO do not have significantly different trade patterns than non-members.
I will be curious to see Peter Gallagher’s take on this. Meanwhile, I find it plausible, since I think of these international trade organizations as just make-work for lawyers and bureaucrats.
For Discussion. Has anyone come across any discussion/criticism of Rose’s empirical analysis?