Working Paper: NBER ID: w28947
Authors: Robert W. Staiger
Abstract: I explore whether the world trading system of the twentieth century can be adapted to address the challenges of the twenty-first. I first develop an understanding of how GATT functioned during the twentieth century, and which features of the economic environment were most important in determining its success. I then examine a list of changes in the global economy that are sometimes identified as warranting changes in the design of the GATT/WTO. I argue that the "terms-of-trade" theory of trade agreements provides a compelling framework for understanding the impact of GATT in the twentieth century, and I show that when viewed through this lens, the rationale for GATT’s design features transcend many, though not all, of the current challenges facing the WTO.
Keywords: No keywords provided
JEL Codes: F02; F1; F13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| GATT's design features (F13) | reduction of tariffs (F13) |
| changing economic landscape (F69) | relevance and effectiveness of existing trade agreements (F13) |
| historical design of GATT (F13) | contemporary challenges facing the WTO (F13) |