On the heterogeneous trade and welfare effects of GATT/WTO membership
- We quantify the effects of GATT/WTO membership on trade and welfare. Using an extensive database covering manufacturing trade for 186 countries over the period 1980–2016, we find that the average partial equilibrium impact of GATT/WTO membership on trade among member countries is large, positive, and significant. We contribute to the literature by estimating country-specific estimates and find them to vary widely across the countries in our sample with poorer members benefitting more. Using these estimates, we simulate the general equilibrium effects of GATT/WTO on welfare, which are sizable and heterogeneous across members. We show that countries not experiencing positive trade effects from joining GATT/WTO can still gain in terms of welfare, due to lower import prices and higher export demand.
| Author: | Gabriel FelbermayrORCiD, Mario Larch, Erdal YalcinORCiDGND, Yoto V. Yotov |
|---|---|
| DOI: | https://doi.org/10.1007/s10290-023-00520-6 |
| ISSN: | 1610-2878 |
| ISSN: | 1610-2886 |
| Parent Title (English): | Review of World Economics |
| Publisher: | Springer |
| Place of publication: | Heidelberg |
| Document Type: | Article |
| Language: | English |
| Year of Publication: | 2024 |
| Release Date: | 2024/02/19 |
| Tag: | GATT; WTO; Heterogeneous policy effects; Welfare |
| Page Number: | 26 |
| Note: | Corresponding author: Yoto V. Yotov |
| Relevance: | Peer reviewed Publikation in Master Journal List |
| Open Access?: | Nein |
| Licence (German): |  Urheberrechtlich geschützt |
