Does the GATT/WTO Increase Trade in the Asia-Pacific Region?

Abstract

Taking into consideration tariff bindings, WTO membership has had a substantial positive impact on Asia-Pacific economies Agricultural protection in developing countries tends to increase with economic growth. WTO membership restricts this kind of protection through tariff bindings.

So far, most studies have typically ignored this effect and assumed that current applied tariffs in non-member countries will remain unchanged in the absence of accession to the WTO. However, new econometric work based on the gravity equation shows that GATT/WTO membership has had a substantial positive impact on Asia-Pacific economies when taking into consideration tariff bindings. Show more