The relationship between GATT membership and structural breaks in international trade

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1 Scopus citations

Abstract

Using sequential structural break tests, we attempt to determine if and when a new GATT member experiences statistically significant changes in the paths of its trade with incumbent members. To test for the nature of a change, we compare the averages of the actual postbreak trade shares with the averages of the postbreak extrapolated trade shares. Should a significant structural break be detected, we compare the break year with the accession year of that country to GATT. Our results show that only a small fraction of countries experience significant positive structural breaks in their trade shares. Furthermore, any significant positive breaks generally occur far before or after the time of a country's accession to GATT.

Original languageEnglish
Article number1
JournalGlobal Economy Journal
Volume8
Issue number4
DOIs
StatePublished - 1 Jan 2008

Keywords

  • GATT membership
  • International trade
  • Structural breaks

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (all)

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