|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/25943
|
| | |
| Title: | | Does WTO membership make a difference at the extensive margin of world trade?  |
| Authors: | | Felbermayr, Gabriel Kohler, Wilhelm K. |
| Issue Date: | | 2007 |
| Series/Report no.: | | CESifo working paper 1898 |
| Abstract: | | In his seminal paper, Rose (2004) concluded from a gravity-type study of bilateral trade that the GATT/WTO does not play a strong role in encouraging trade. Rose looks at countries where the amount of trade was positive to start with (intensive margin). In this paper, we present a corner-solutions version of the gravity model of bilateral trade which explains zero trade and leaves room for WTO membership to promote trade at the extensive margin of trade. Relying on a Tobit estimation approach, we find that WTO membership has promoted world trade to a larger extent than Roses results seem to indicate. |
| JEL: | | F12 F13 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/25943
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|