WTO membership and the extensive margin of world trade : new evidence

Felbermayr, Gabriel; Kohler, Wilhelm

WTO membership and the extensive margin of world trade : new evidence

dc.contributor.author	Felbermayr, Gabriel	de
dc.contributor.author	Kohler, Wilhelm	de
dc.date.accessioned	2024-04-08T08:42:12Z
dc.date.available	2024-04-08T08:42:12Z
dc.date.created	2009-03-23
dc.date.issued	2009
dc.description.abstract	Recent literature has argued that, contrary to the results of a seminal paper by Rose (2004), WTO membership does promote bilateral trade, at least for developed economies and if membership includes non-formal compliance. We review the literature in order to identify open issues. We then develop the simplest possible \corner-solutions" version of the gravity model which serves as a framework to readdress these issues. We focus on the extensive margin of trade that separates positive-trade from zero-trade country pairs. We argue that the model can be consistently estimated using Poisson pseudo-maximum-likelihood methods with exporter and importer fixed effects. We account for coding issues and the potential heterogeneity of the WTO membership which recent contributions have stressed. While we find that WTO membership increases the likelihood that a given country pair trades, we do not find that the extensive margin has a strong and systematic effect on the average trade-creating potential of the WTO.	en
dc.identifier.swb	305029096
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5236
dc.identifier.urn	urn:nbn:de:bsz:100-opus-3465
dc.language.iso	eng
dc.relation.ispartofseries	Hohenheimer Diskussionsbeiträge; 304
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject	Gravity approach	en
dc.subject	WTO	en
dc.subject	Monopolistic competition	en
dc.subject	Real trade costs	en
dc.subject.ddc	330
dc.subject.gnd	World Trade Organization	de
dc.subject.gnd	Welthandel	de
dc.title	WTO membership and the extensive margin of world trade : new evidence	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.faculty.number	3	de
local.institute.number	520alt	de
local.opus.number	346
local.series.issueNumber	304
local.series.title	Hohenheimer Diskussionsbeiträge
local.university	Universität Hohenheim	de
local.university.faculty	Fakultät Wirtschafts- und Sozialwissenschaften	de
local.university.institute	Institut für Volkswirtschaftslehre (bis 2010)	de

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