Skip to main content
×
Home
    • Aa
    • Aa

Alliances, market power, and postwar trade: explaining the GATT/WTO

  • JOANNE GOWA (a1)
Abstract
Abstract

This paper argues that testing the empirical implications of existing theories about institutions yields rich insights into the postwar trade regime. Market-failure theory predicts that the GATT/WTO will exert its strongest impact on trade between its largest member states. A theory based on security externalities implies that a sizeable expansion of trade will also occur between a subset of the contracting parties that alliance ties link. An analysis of the data shows that the evidence is consistent with both theories, making clear the value added of taking explicitly into account the economics and politics that motivated the establishment of the postwar regime and that governed its subsequent operation.

Copyright
Corresponding author
*Email: jgowa@princeton.edu
Linked references
Hide All

This list contains references from the content that can be linked to their source. For a full set of references and notes please see the PDF or HTML where available.

Kyle Bagwell , Petros C. Mavroidis , and Robert W. Staiger (2002), ‘It's a Question of Market Access’, American Society of International Law, 96(1): 5676.

Chad P. Bown (2004), ‘Developing Countries as Plaintiffs in GATT/WTO Trade Disputes’, The World Economy, 27(1): 5980.

Christian Broda , Nuno Limão , and David Weinstein (2008), ‘Optimal Tariffs and Market Power: The Evidence’, American Economic Review, 98(5): 20322065.

Christina L. Davis and Sarah Blodgett Bermeo (2009), ‘Who Files? Developing Country Participation in GATT/WTO Adjudication’, Journal of Politics, 71(3): 10331049.

Joanne Gowa and Soo Yeon Kim (2005), ‘An Exclusive Country Club: The Effects of the GATT on Trade, 1950–94’, World Politics, 57(4): 453478.

Joanne Gowa and Edward D. Mansfield (1993), ‘Power Politics and International Trade’, American Political Science Review, 87(2): 408420.

Douglas A. Irwin , Petros C. Mavroidis , and Alan O. Sykes (2008), The Genesis of the GATT, New York, NY: Cambridge University Press.

Rodney D. Ludema and Anna Maria Mayda (2009), ‘Do Countries Free Ride on MFN?’, Journal of International Economics, 77: 137150.

Edward D. Mansfield and Rachel Bronson (1997), ‘Alliances, Preferential Trading Arrangements, and International Trade’, American Political Science Review, 91(1): 94–107.

Andrew K. Rose (2004), ‘Do We Really Know That the WTO Increases Trade?’, American Economic Review, 94(1): 98–114.

Arvind Subramanian and Shang-Jin Wei (2007), ‘The WTO Promotes Trade, Strongly but Unevenly’, Journal of International Economics, 72(1): 151175.

Rorden Wilkinson and James Scott (2008), ‘Developing Country Participation in the GATT: A Reassessment’, World Trade Review, 7(3): 473510.

Recommend this journal

Email your librarian or administrator to recommend adding this journal to your organisation's collection.

World Trade Review
  • ISSN: 1474-7456
  • EISSN: 1475-3138
  • URL: /core/journals/world-trade-review
Please enter your name
Please enter a valid email address
Who would you like to send this to? *
×

Metrics

Full text views

Total number of HTML views: 1
Total number of PDF views: 63 *
Loading metrics...

Abstract views

Total abstract views: 246 *
Loading metrics...

* Views captured on Cambridge Core between September 2016 - 25th May 2017. This data will be updated every 24 hours.