Categories:
Uncategorized
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?
READER COMMENTS
Kimon
Apr 13 2004 at 5:02pm
Subramanian and Wei, “The WTO Promotes Trade, Strongly but Unevenly”, NBER W10024.
Peter Gallagher
Apr 13 2004 at 6:46pm
Hi Arnold,
I accept your challenge. But I may need a day or two to read the revised version of the Rose paper. Other ‘made-work’ is distracting me right now (thank goodness…).
Incidentally, I referred to the reponse to Rose from Wei and Subramaniam last year in this story. I see Kimon is also aware of this paper.
I’ll be back to you.
Best wishes,
Peter
Ivan from Croatia
Apr 15 2004 at 5:15am
Contemporary world trade system is very far from libaral. This is very pragmatic system for rich countries. If we have this in mind, Rose´s results seem to be not very exciting. When I look at the world economy as a whole, it seems to me that nothing is how should be. I think that economic theory need a new definition of efficiency, which will be able to explaine why world economic system, together with its institutions, is not what economists expect, especialy liberal economists. I am working on it!
Jamie Lee
Nov 30 2004 at 5:27am
I enjoy reading through this informal place. I will surely visit you again to see if anything new appears on it.
Good luck for the future.
Comments are closed.