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Argument Against Free Trade

In: Social Issues

Submitted By Onyx1114
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Institutions in International Relations: Understanding the Effects of the GATT and the WTO on World Trade
Judith L+ Goldstein, Douglas Rivers, and Michael Tomz

Abstract The General Agreement on Tariffs and Trade ~GATT! and the World Trade Organization ~WTO! have been touted as premier examples of international institutions, but few studies have offered empirical proof+ This article comprehensively evaluates the effects of the GATT0WTO and other trade agreements since World War II+ Our analysis is organized around two factors: institutional standing and institutional embeddedness+ We show that many countries had rights and obligations, or institutional standing, in the GATT0WTO even though they were not formal members of the agreement+ We also expand the analysis to include a range of other commercial agreements that were embedded with the GATT0WTO+ Using data on dyadic trade since 1946, we demonstrate that the GATT0WTO substantially increased trade for countries with institutional standing, and that other embedded agreements had similarly positive effects+ Moreover, our evidence suggests that international trade agreements have complemented, rather than undercut, each other+

When and how do international institutions promote cooperation? Few questions are as fundamental to international relations or as salient for world leaders+ Due to the contributions of Keohane and others, we now have sophisticated theories about the emergence and effects of international institutions, but empirical research has not proceeded apace+1 As Frieden and Martin point out, “theoretical work on inter-

An earlier version of this article was presented at the 99 th Annual Meeting of the American Political Science Association, Philadelphia, August 28–31, 2003+ We thank Tim Büthe, Joanne Gowa, Miles Kahler, Andrew Rose, Arthur Stein, Richard Steinberg, and seminar participants at…...

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