[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/zbw/wtowps/ersd20211.html
   My bibliography  Save this paper

WTO accession and growth: Tang and Wei Redux

Author

Listed:
  • Brotto, André
  • Jakubik, Adam
  • Piermartini, Roberta
Abstract
On the occasion of the 25th anniversary of the WTO, this paper re-estimates the impact of WTO accession on growth. Joining the multilateral trading system not only expands access to international markets but also requires commitment to domestic reforms. Tang and Wei (2009) showed that there is in fact a positive effect of WTO on growth also during the period of accession when these commitments are undertaken. In this paper, we extend Tang and Wei's analysis to the sample of 32 newly acceded countries. We find that WTO accession is associated with a significant positive increase in GDP growth. This effect is larger than previously estimated. We find that five years after accession an economy is 30% larger, and that the impact of WTO entry on growth persists beyond the first five years.

Suggested Citation

  • Brotto, André & Jakubik, Adam & Piermartini, Roberta, 2021. "WTO accession and growth: Tang and Wei Redux," WTO Staff Working Papers ERSD-2021-1, World Trade Organization (WTO), Economic Research and Statistics Division.
    • Handle: RePEc:zbw:wtowps:ersd20211
    DOI: 10.30875/288958f2-en
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/228655/1/1744742200.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.30875/288958f2-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    2. James Feyrer, 2019. "Trade and Income—Exploiting Time Series in Geography," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 1-35, October.
    3. Tang, Man-Keung & Wei, Shang-Jin, 2009. "The value of making commitments externally: Evidence from WTO accessions," Journal of International Economics, Elsevier, vol. 78(2), pages 216-229, July.
    4. Subramanian, Arvind & Wei, Shang-Jin, 2007. "The WTO promotes trade, strongly but unevenly," Journal of International Economics, Elsevier, vol. 72(1), pages 151-175, May.
    5. Luigi Guiso & Giuseppe Parigi, 1999. "Investment and Demand Uncertainty," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 185-227.
    6. Leahy, John V & Whited, Toni M, 1996. "The Effect of Uncertainty on Investment: Some Stylized Facts," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(1), pages 64-83, February.
    7. Goldstein, Judith L. & Rivers, Douglas & Tomz, Michael, 2007. "Institutions in International Relations: Understanding the Effects of the GATT and the WTO on World Trade," International Organization, Cambridge University Press, vol. 61(1), pages 37-67, January.
    8. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
    9. Michael Tomz & Judith L. Goldstein & Douglas Rivers, 2007. "Do We Really Know That the WTO Increases Trade? Comment," American Economic Review, American Economic Association, vol. 97(5), pages 2005-2018, December.
    10. Cattaneo, Olivier & Braga, Carlos A. Primo, 2009. "Everything you always wanted to know about wto accession (but were afraid to ask)," Policy Research Working Paper Series 5116, The World Bank.
    11. Larch, Mario & Monteiro, José-Antonio & Piermartini, Roberta & Yotov, Yoto, 2019. "On the Effects of GATT/WTO Membership on Trade: They are Positive and Large After All," School of Economics Working Paper Series 2019-4, LeBow College of Business, Drexel University.
    12. Mansfield, Edward D. & Reinhardt, Eric, 2008. "International Institutions and the Volatility of International Trade," International Organization, Cambridge University Press, vol. 62(4), pages 621-652, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gnangnon, Sèna Kimm, 2022. "Effect of the Duration of the Membership in GATT/WTO on Commercial Services Exports in Developing Countries," EconStor Preprints 262167, ZBW - Leibniz Information Centre for Economics.
    2. Gnangnon, Sèna Kimm, 2022. "Duration of the Membership in the World Trade Organization and Aid for Trade Flows," EconStor Preprints 260562, ZBW - Leibniz Information Centre for Economics.
    3. Gnangnon, Sèna Kimm, 2021. "WTO membership, the membership duration and the utilization of non-reciprocal trade preferences offered by the QUAD Countries," EconStor Preprints 247265, ZBW - Leibniz Information Centre for Economics.
    4. Gnangnon, Sèna Kimm, 2022. "Effect of the Duration of Membership in the GATT/WTO on Human Development in Developed and Developing Countries," EconStor Preprints 265061, ZBW - Leibniz Information Centre for Economics.
    5. Gnangnon, Sèna Kimm, 2023. "Duration of membership in the world trade organization and investment-oriented remittances inflows," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 258-277.
    6. Gnangnon, Sèna Kimm, 2022. "Duration of WTO Membership and Investment-Oriented Remittances Flows," EconStor Preprints 251274, ZBW - Leibniz Information Centre for Economics.
    7. Gnangnon, Sèna Kimm, 2022. "Effect of Aid for Trade flows on the Accession to the World Trade Organization," EconStor Preprints 261331, ZBW - Leibniz Information Centre for Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Koopman, Robert & Hancock, John & Piermartini, Roberta & Bekkers, Eddy, 2020. "The Value of the WTO," Journal of Policy Modeling, Elsevier, vol. 42(4), pages 829-849.
    2. Gnangnon, Sèna Kimm, 2023. "Duration of membership in the world trade organization and investment-oriented remittances inflows," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 258-277.
    3. Gnangnon, Sèna Kimm, 2022. "Duration of WTO Membership and Investment-Oriented Remittances Flows," EconStor Preprints 251274, ZBW - Leibniz Information Centre for Economics.
    4. Emanuel Ornelas & Marcos Ritel, 2020. "The not‐so‐generalised effects of the Generalized System of Preferences," The World Economy, Wiley Blackwell, vol. 43(7), pages 1809-1840, July.
    5. Choudhury, Sanchari, 2019. "WTO membership and corruption," European Journal of Political Economy, Elsevier, vol. 60(C).
    6. Mark Copelovitch & David Ohls, 2012. "Trade, institutions, and the timing of GATT/WTO accession in post-colonial states," The Review of International Organizations, Springer, vol. 7(1), pages 81-107, March.
    7. Xuepeng Liu, 2016. "Trade Agreements and Economic Growth," Southern Economic Journal, John Wiley & Sons, vol. 82(4), pages 1374-1401, April.
    8. Gnangnon, Sèna Kimm, 2023. "Effect of the duration of membership in the GATT/WTO on economic growth volatility," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 448-467.
    9. Inkyo Cheong & Valijon Turakulov, 2022. "How Central Asia to Escape from trade isolation?: Policy targeted scenarios by CGE modelling," The World Economy, Wiley Blackwell, vol. 45(8), pages 2622-2648, August.
    10. Javorcik, Beata S. & Narciso, Gaia, 2017. "WTO accession and tariff evasion," Journal of Development Economics, Elsevier, vol. 125(C), pages 59-71.
    11. Gnangnon, Sèna Kimm, 2022. "Effect of the Duration of Membership in the GATT/WTO on Human Development in Developed and Developing Countries," EconStor Preprints 265061, ZBW - Leibniz Information Centre for Economics.
    12. Emanuel Ornelas, 2016. "Special and Differential Treatment for Developing Countries," CESifo Working Paper Series 5823, CESifo.
    13. Vicky Chemutai & Hubert Escaith, 2017. "Measuring World Trade Organization (WTO) Accession Commitments and their Economic Effects," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(02), pages 1-27, June.
    14. Eicher, Theo S. & Henn, Christian, 2011. "In search of WTO trade effects: Preferential trade agreements promote trade strongly, but unevenly," Journal of International Economics, Elsevier, vol. 83(2), pages 137-153, March.
    15. Yoto V. Yotov, 2021. "The Variation of Gravity within Countries (or 15 Reasons Why Gravity Should Be Estimated with Domestic Trade Flows)," CESifo Working Paper Series 9057, CESifo.
    16. N. Nuruzzaman & Ajai Gaur & Rakesh B. Sambharya, 2022. "WTO accession and firm exports in developing economies," Journal of International Business Policy, Palgrave Macmillan, vol. 5(4), pages 444-466, December.
    17. Anca D. Cristea & Anna Miromanova, 2022. "Firm‐level trade effects of WTO accession: Evidence from Russia," Review of International Economics, Wiley Blackwell, vol. 30(1), pages 237-281, February.
    18. Dutt, Pushan, 2020. "The WTO is not passé," European Economic Review, Elsevier, vol. 128(C).
    19. Jung, Benjamin, 2020. "The heterogeneous effects of China's accession to the world trade organization," Hohenheim Discussion Papers in Business, Economics and Social Sciences 10-2020, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    20. Anna Golovko & Hasan Sahin, 2021. "Analysis of international trade integration of Eurasian countries: gravity model approach," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 519-548, September.

    More about this item

    Keywords

    Dynamic gains from trade; economic growth; trade liberalization; newly acceded countries; Article XII countries;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:wtowps:ersd20211. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/wtoerch.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.