TY - JOUR
T1 - The WTO trade effect
AU - Chang, Pao Li
AU - Lee, Myoung Jae
N1 - Funding Information:
We thank two anonymous referees, Robert Staiger, Jeffrey Bergstrand, and Alan Deardorff for their helpful comments and suggestions. We also thank colleagues, Hian Teck Hoon, Davin Chor, and Tomoki Fujii, at SMU for their helpful feedback at different stages of the project. The research of Myoung-jae Lee was supported by the Korea Research Foundation funded by the Korean Government ( KRF-2009-327-B00091 ).
Copyright:
Copyright 2011 Elsevier B.V., All rights reserved.
PY - 2011/9
Y1 - 2011/9
N2 - This paper re-examines the GATT/WTO membership effect on bilateral trade flows, using nonparametric methods including pair-matching, permutation tests, and a Rosenbaum (2002) sensitivity analysis. Together, these methods provide an estimation framework that is robust to misspecification bias, allows general forms of heterogeneous membership effects, and addresses potential hidden selection bias. This is in contrast to most conventional parametric studies on this issue. Our results suggest large GATT/WTO trade-promoting effects that are robust to various restricted matching criteria, alternative GATT/WTO indicators, non-random incidence of positive trade flows, inclusion of multilateral resistance terms, and different matching methodologies.
AB - This paper re-examines the GATT/WTO membership effect on bilateral trade flows, using nonparametric methods including pair-matching, permutation tests, and a Rosenbaum (2002) sensitivity analysis. Together, these methods provide an estimation framework that is robust to misspecification bias, allows general forms of heterogeneous membership effects, and addresses potential hidden selection bias. This is in contrast to most conventional parametric studies on this issue. Our results suggest large GATT/WTO trade-promoting effects that are robust to various restricted matching criteria, alternative GATT/WTO indicators, non-random incidence of positive trade flows, inclusion of multilateral resistance terms, and different matching methodologies.
KW - Matching
KW - Permutation test
KW - Sensitivity analysis
KW - Signed-rank test
KW - Trade flow
KW - Treatment effect
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U2 - 10.1016/j.jinteco.2011.05.011
DO - 10.1016/j.jinteco.2011.05.011
M3 - Article
AN - SCOPUS:80052268846
SN - 0022-1996
VL - 85
SP - 53
EP - 71
JO - Journal of International Economics
JF - Journal of International Economics
IS - 1
ER -