The effect of membership in a trade organisation on international trade

Abstract

A general consensus among economists is that the WTO institution (formerly known as the GATT) has a significant and positive impact on international trade. However, as of the early 2000s, this statement was never truly empirically proven right. That is until Andrew K. Rose sparked the debate with a paper affirming the institution did not, in fact, have any effect on global trade. Since then, many economists have contributed to analyse and obtain the real effect of the WTO. Using a different database with a larger observed period of time and varied methods, this study will also aim at analysing this matter. The outcome seems positive and significant and in line with what other have found before.