Tomz, Goldstein, Rivers (2007)- Do We Really Know that the WTO Increases Trade-Comment

Tomz, Goldstein, Rivers (2007)- Do We Really Know that the WTO Increases Trade-Comment

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Do We Really Know that the WTO Increases Trade? Comment By: Michael Tomz, Judith L. Goldstein, and Douglas Rivers (2007) Tomz, Michael, Judith L. Goldstein, and Douglas Rivers. 2007. “Do We Really Know That the WTO Increases Trade? Comment.” The American Economic Review. 97(5): 2005-2018. Section 1: Introduction Andrew K Rose (2004) found that trade was not increased through membership in GATT or WTO Tomz et al. wish to refute those findings They claim there are problems with Rose’s classification of membership in IO 1. Rose excluded many states with ‘rights and obligations under the agreement (GATT) a. “This caused ‘downward bias’ in estimates of GATT’s effect on trade” Section 2: GATT Membership and Participation GATT membership is built around the ideas of MFN status (Most Favored Nation) and reciprocity Public documents and archives offer support for three “non-member participants” of GATT” 1. Certain Colonies and Territories: a. Could be sponsored by their “Metropoles” b. No Vote 2. Newly Independent States (De Facto Members): a. did not pay dues or vote but were extended the same benefits that all members received b. de facto membership ended with the creation of the WTO
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This note was uploaded on 02/03/2012 for the course POLS 5308 taught by Professor Biglaiser during the Spring '11 term at Texas Tech.

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Tomz, Goldstein, Rivers (2007)- Do We Really Know that the WTO Increases Trade-Comment

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