Membership Has Its Privileges: The Impact of GATT on International Trade

Recent research concludes that membership in the GATT/WTO had no effect on foreign trade. By mistakenly classifying many countries as outsiders, even though they had rights and obligations under the agreement, this work systematically underestimates the effect of GATT. We correct the downward bias in previous estimates. Our analyses show that GATT substantially increased trade, and that its effects were relatively stable across countries and over time.