The GATT/WTO has promoted trade, but only in capital-intensive commodities

This article uses gravity models to explore the impact of the General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WHO) on bilateral trade in a sample of 46 countries over the period 1965 to 1997. Our data enable us to disaggregate trade by broad commodity aggregates. The results...

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Bibliographic Details
Published inApplied economics Vol. 39; no. 12; pp. 1573 - 1581
Main Authors Engelbrecht, Hans-Jürgen, Pearce, Christopher
Format Journal Article
LanguageEnglish
Published London Routledge 01.07.2007
Taylor and Francis Journals
Taylor & Francis Ltd
SeriesApplied Economics
Subjects
Commodities
Commodity market
Economic models
Empirical tests
Estimating techniques
GATT
Gravity models
Impact analysis
International trade
Studies
Trade creation
Trade flows
Trade volume
World Trade Organization
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Summary:This article uses gravity models to explore the impact of the General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WHO) on bilateral trade in a sample of 46 countries over the period 1965 to 1997. Our data enable us to disaggregate trade by broad commodity aggregates. The results for total trade are similar to those reported by Rose (2004). However, the disaggregated estimates reveal that the GATT/WTO has had a positive and statistically significant impact on trade in capital-intensive commodities, but no statistically significant impact on trade in other commodities. The article demonstrates that simple modifications of Rose's approach lead to results that are much more 'common sense' than his (JEL F10, F15).
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
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ISSN:0003-6846
1466-4283
DOI:10.1080/00036840600592874