DP3764 Which International Institutions Promote International Trade?

Author(s): Andrew K Rose
Publication Date: January 2003
Keyword(s): bilateral, emprircal, GATT, gravity, IMF, OECD, OEEC, panel, WTO
JEL(s): F13, F15
Programme Areas: International Trade and Regional Economics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=3764

This Paper estimates the effect on international trade of three multilateral organizations intended to increase trade: 1) the World Trade Organization (WTO) and its predecessor the Generalized Agreement on Tariffs and Trade (GATT); 2) the International Monetary Fund (IMF); and 3) the Organization for Economic Cooperation and Development (OECD). I use a standard ?gravity? model of bilateral merchandise trade and a large panel data set covering over 50 years and 175 countries. My results indicate that OECD membership (but neither GATT/WTO nor IMF membership) has had a consistently large positive effect on trade.